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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I understand that a deed of trust is contract between creditor

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I understand that a "deed of trust" is contract between creditor and lender, securing a promissory note (mortgage). If on filing of Chap 7 bankruptcy, the obligation of creditor to pay the mortgage is discharged. Then are the obligations for specific contractual performance in the deed of trust discharged. i.e. the obligation to insure the property and pay the taxes, etc. All other contractual obligations it would seem are discharged except for specific exclusions like child support, student loans, payroll taxes, Right?

Hi JACustomer,

Yes - if a debtor (creditor is the lender, debtor is the borrower) files a Bankruptcy, all obligations to the lender are discharged, including the obligations to pay for insurance and the property taxes.


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Customer: replied 5 years ago.

Of course you are correct re the creditor debtor, Sorry bout that. I must be having brain f--t! Thanks again.


You're welcome! And thank you for accepting my answer, and for the bonus!