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 cortrightlaw Your Own Question
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
Type Your Bankruptcy Law Question Here...
cortrightlaw is online now
A new question is answered every 9 seconds

How are arrears on a mortgage on a home that is underwater

This answer was rated:

How are arrears on a mortgage on a home that is underwater treated in a chapter 7 BK?

cortrightlaw : If you are surrendering the home and letting it eventually foreclose then the arrearage is discharged by the chapter 7 bankruptcy. If you are planning on keeping the home you would have to make the arrearage current or they could still foreclose on your home.

Can the arrearage be included in a chapter 13 plan? Would the full amount still need to be paid?

cortrightlaw : Yes in a 13 it could be paid and would need to be paid at 100%. If the second mortgage is unsecured by the value of the home you can strip the mortgage off the home and discharge the debt.
cortrightlaw and 2 other Bankruptcy Law Specialists are ready to help you