We filed a chapter 13 and have struggled to the point that we can't afford the amount anymore. Can we forfeit our house and switch to a chapter 7?
2006-09-17 15:07:59 · 3 answers · asked by BarkFitness Pet Sitting 2 in Business & Finance ➔ Personal Finance
That's the way that it usually works. Consult with an attorney. You may be able to keep your home! The rules vary from state to state but all states allow you to keep at least some equity in your principal residence. You'll have to continue making your mortgate payments of course, but your unsecured debts will be cleared.
2006-09-17 15:17:10 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Your mortgage will not go away in a Chapter 7 filing either.
The bankruptcy court makes that decision whether to convert from a Chapter 13 to a Chapter 7. Sounds like your house is not going to sell but I would hold on to it as long as I can until the mortgage company forecloses.
2006-09-18 01:00:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I am not sure what the laws are in your state, but in Tennessee we can convert from a chapter 13 to chapter7. Just call your attorney..
2006-09-18 17:40:55 · answer #3 · answered by rhonda w sf 2 · 0⤊ 0⤋