What Happens to My Mortgage After Chapter 7?

Like many people, you may be underwater on your mortgage and considering bankruptcy to stop foreclosure. This is a very sensible option for many who want to keep their homes. However, what happens after you file Chapter 7? Do your mortgage payments go away?

If you want to keep your home you will likely need to reaffirm your mortgage debt after filing Chapter 7. This means that, although bankruptcy initially stops foreclosure attempts giving you time to work with your lender, you will need to resume the mortgage and arrears at some point in order to stay in the home. In addition to the mortgage you will also be responsible for the taxes and insurance, just like before filing.

Do not fall into the trap of pro se bankruptcy without knowing all of the facts. A phone call or office visit to the Fears | Nachawati Law Firm may very well save you a world of trouble.