If I get a house months before filing bankruptcy and then file Chapter 7 after, could I still keep the house?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I get a house months before filing bankruptcy and then file Chapter 7 after, could I still keep the house?
If so, what would be the cons to this?
Asked on May 8, 2015 under Bankruptcy Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
If the house has a mortgage, you can only keep it if you keep paying the mortgage (or such other amount as the lender agrees to--e.g. they may agree to modify the loan). The bankruptcy will temporarily stop, or stay, any foreclosure for non-payment, but ultimately, if you don't pay the mortgage, the lender will be able to foreclose--thought they will not be able to also sue you for any unpaid balance of the loan.
If there is no mortgage, the house will be an asset included in your bankruptcy filing, and there are circumstances under which you may have to liquidate (sell) it.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.