How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

bankruptcy

This answer was rated:

I am considering filing for bankruptcy. I am trying to get my home mortgage restructured. I have an ARM that was scheduled to adjust this month. The mortgage company is still reviewing my application. I am not behind on any mortgage payments; however, I have three debt collection agencies coming after me. One I can pay off in about four months. The other two are big debts approximately $35,000. One wants $11,000 all at once and the other wants payments of $2,000+ per month. That is double my mortgage payment. If the mortgage request for restructuring does not go through, it will be all over for me. I don't want to file for bankruptcy needless to say, but I don't see any alternative, especially if the mortgage situation does not correct itself. Can you explain how bankruptcy works in Pennsylvania.  Thank you.
Hi JACustomer,
Are you asking how or if one can file a Bankruptcy, what the result of filing would be, or something else?
Customer: replied 4 years ago.
If my situation with the mortgage is resolved, but I am sued in court for the approximately $35,000 of debt I owe, can I file for bankruptcy. If so, would the house need to be included even if I'm not in arrears at this point. Thank you.

Thank you for your response.

What is the current market value of your home?

What is the balance on the mortgage?

Customer: replied 4 years ago.
$214,000. It's under water. I have been trying to refinance off and on for three years.
Customer: replied 4 years ago.
My apologies. I did not respond completely to your question. I have a first and second mortgage. The 1st is approximately $172,000 - the second (home equity loan) is approximately $42,000. The last time I had the house appraised, it came in at approximately $189,500. Hope this fills in the holes from my first response.

If you file a Bankruptcy, you will be able to keep your home if you do continue to pay the mortgage. A Bankruptcy will discharge your obligation to pay the mortgage, so there will be nothing the mortgage company can do to you if you stop paying, but you can continue to pay it if you want to.

And of course, your obligation to pay the credit card debt will also be discharged.

 

I think this is what you wanted to know. If not, please let me know.
Thank you.
cfortunato and 3 other Bankruptcy Law Specialists are ready to help you