Comments on: Can A Friend Include House In Bankruptcy.?

By: Due_Dece

Due_Dece — Sun, 15 Nov 2009 17:08:58 +0000

That’s called foreclosure when you stop paying on your home and they take it away from you. There’s no way to just stop paying on your house and still live there- if there was, don’t you think EVERYONE would be doing it?
Have him SELL the house if he can’t afford it. Short sales are a great way to avoid foreclosure. There are also companies who buy houses for cash.
It kinda sucks being a homeowner when you have no money, huh? *He* probably should have just stuck to renting until he could actually afford a house.

By: Bob D

Bob D — Sun, 15 Nov 2009 13:09:21 +0000

Nope. Federal debts (USA residents) and mortgages are not discharged in any type of bankruptcy in the US. And soon if you make above the medium income in your area (already occuring in some states) youwill only be able to file a Ch13 and not a Ch7 so will have to enter into a plan with the court and still pay off the debt

By: StephenW

StephenW — Sun, 15 Nov 2009 11:25:29 +0000

If they keep the house, then only the part of the mortgage that is “unsecured” (exceeds the value of the house) is discharged through bankruptcy. They continue to owe the amount that is “secured” (in other words, the entire mortgage or the value of the house, whichever is less).

By: TNT

TNT — Sun, 15 Nov 2009 09:10:33 +0000

No, mortgage company will forclose your home.

By: Tbone

Tbone — Sun, 15 Nov 2009 07:18:06 +0000

No. Since they actually own the house (Have a lien on it).

By: mybuttst

mybuttst — Sun, 15 Nov 2009 03:17:54 +0000

Nope…..otherwise everyone would file bankruptcy to get their house for free.

By: thelucid

thelucid — Sun, 15 Nov 2009 01:08:36 +0000

It completely depends on your state law. FInd your state’s website and look for help numbers.

By: Mr. Knowitall

Mr. Knowitall — Sat, 14 Nov 2009 20:18:47 +0000

Bob is correct – if your friend makes too much, he must file a Chapter 13 bankruptcy and will have to pay off all of his debt.
If he doesn’t make too much and is able to file a Chapter 7 bankruptcy, the house can be included, but in doing so, he loses it to foreclosure. If there is a remaining balance after the home is sold, he may be responsible for it.