Can my 2nd mortgage go into a Chapter 7 if I keep my first mortgage?

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Can my 2nd mortgage go into a Chapter 7 if I keep my first mortgage?

And can I keep the house?

Asked on November 4, 2013 under Bankruptcy Law, Illinois

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 11 years ago | Contributor

All mortgage, as the lenders are creditors, must be included in a chapter 7.  You may, however, wish to reaffirm on debts which are secured to property you wish to retain.

If you file a chapter 7, you cn not extinguish the lien of the 2nd mortgage.  Although you would have no financial responsibility to pay the debtm, the lien holder could still foreclose upon its lien and gain possession of the home, after paying off the first lien holder.


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