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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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How strapped is a person in bankruptcy to a mortgage. The

Customer Question

How strapped is a person in bankruptcy to a mortgage. The Lender who just had the loan, Taylor, Bean and Whitaker went out of business. The bankruptcy court now handed the mortgage payments to Bank of America who is now HANDLING the payments. What does that mean-handling. They stress they are not our mortgage company. We want to move out and live with a relative and just empty the house. What is the consequences of doing just that along with notifying the bankruptcy trustee that we no longer want to keep paying on the house.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  FiveStarLaw replied 3 years ago.

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

You may want to convert your chapter 13 bankruptcy to a chapter 7. This would give you the opportunity to walk away from the house and the debt associated with the house

WebLaw :

"Handling the payments" means the entity that it is servicing the debt

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

JACUSTOMER-cix4perk- :

Does that mean everything inside the house as well as the house gets repossessed? Will another whole new bankruptcy, another lawyer and a whole new charge and waiting process ensue?

WebLaw :

You can simply stop making your chapter 13 payments and opt to convert to a chapter 7. There should be no additional filing fee

WebLaw :


I am working on your answer. One moment please.

WebLaw :

I will explain the different chapters in bankruptcy.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for Indiana:
http://www.bankruptcyinformation.com/in_exemp.htm

JACUSTOMER-cix4perk- :

Not interested in a Chapter 7. Ony have one year left on the Chapter 13. What can be done to unload the house. Is find a realtor the only option?

WebLaw :

Yes that is the option

WebLaw :


JustAnswer requires new questions to be posted on new question pages, but you can request me by starting your question with "FOR WEBLAW" and/or typing your question in my question box, which can be found here: http://www.justanswer.com/profile.aspx?PF=9968427&FID=39

WebLaw :

I hope that it helps to know this information

Thank you in advance for remembering to click accept. If you experience difficulty using the accept button, please let me know as JustAnswer pays me for my time only if the "accept" registers.

JACUSTOMER-cix4perk- :

Cannot accept this answer. Your answer is not anything new to me I need to know what can I do in the way of just getting out of the mortgage. That seems to be the only thing keeping the bankruptcy enforce along with a minor amount left of the car loan. Like going to get an appraisal, a house modification, or just letting a realtor sell for what they can get and making up the difference. Is that any better than letting the bankruptcy court settle on the house?

WebLaw :

I will opt out

Expert:  cfortunato replied 3 years ago.
Hi JACustomer,
If you want to remain in your Chapter 13, but you do not want to keep your house, you can modify your plan so that the mortgage payment is removed and the money that was being paid to the mortgage company will instead be used to pay your other creditors. It is also possible that your monthly Chapter 13 payments can be reduced.
You don't have to do anything to sell the house if your mortgage payments stop. If you stop paying the mortgage, it is up the mortgage company to sell the house.

I think this is what you wanted to know. If not, please let me know.
Thank you!
Expert:  cfortunato replied 3 years ago.
Hi again,
Please let me know if you have any further questions.
If not, please don't forget to hit the "ACCEPT" button.
Thank you!

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