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So in all BKs both 7 and 13, the note is set aside and discharged, personal guarantees are removed, no collection for payments can be done. If the BK is dismissed and not completed, then we are back to our original position.
During a Ch 13, the Note remains, but the TD or Mortgage might be removed or "stripped", leaving just the note. I assume that would only happen at the end when the BK is discharged.
A 1st TD or Mortgage will always remain on the property, even after a discharge.
So at what time during this process can I start or complete a foreclosure?
In a bankruptcy, is a mortgage treated any differently than a trust deed?
Do these BK rules apply in all states, or are there other rules in other states.
How does a Homestead work in this case?
Does it protect the homeowner when there is no equity, ie the 1st and 2nd owed is more than the value of the house?
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