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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Can I file Chapter 7 bankruptcy when I have two homes im paying

Customer Question

Can I file Chapter 7 bankruptcy when I have two homes im paying on and only want to file against credit card debt and still keep both of my homes? One home is in Oregon and the other is in Arizona. My husband is retired and Im getting ready to retire. We will not have the income coming in to pay the creditors and keep both of our homes. Since the market is down I cannot put one on the market and I don't want to lose them either.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

Welcome to JustAnswer and thank you for the opportunity to provide you with information..

This depends - can you please tell me the amount of equity in each property?

Customer: replied 5 years ago.

Iam not sure. The first home we payed $225.000 for over 10yrs ago. The assessed value on 1st home is $185,000 and the other we purchased less than a year ago for $100,000.

Expert:  Ellen replied 5 years ago.
Thank you for your information

If my answer is not clear to you or does not completely answer your question, please ask me for clarification by using the reply button.

The chapter 7 bankruptcy would discharge your personal liability on the mortgage (if any) but not the lien on the property. This means if the property were to be foreclosed, the lender could sell the property to satisfy the debt but could not obtain a judgment against you for the unsatisfied portion of the debt. However it also means that you must continue to pay the loans or the lender can foreclose. You also cannot sell the property without paying the mortgage in full

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.

Best wishes for a Happy and Healthy New Year!
Customer: replied 5 years ago.
You didn't answer my question. My question was, can you file bankruptcy on credit ared debt, if you own two homes that you are maling your mortgage pmts on. It has nothing to do with my homes. It is credit card debt that I would be filing bankruptcy on
Expert:  Ellen replied 5 years ago.
Sorry my answer was not clear to you. My answer was yes. Yes you can file bankruptcy on credit card debt if you own to homes that you are making your mortgage payments on.
Customer: replied 5 years ago.
So this will not effect or I won't have to sell a home by filing bankruptcy
Expert:  Ellen replied 5 years ago.
This is why I asked you about the equity in the property. Since it appears to be no equity in the property, you would not have to sell the homes provided you continue to make the mortgage payments