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Can One Protect Their House, On Which They Owe A Mortage, By Declaring Bankruptcy?”?

I owe large amount on house, also on another house, and some on land; am now disabled with huge medical bills and no income. What will bankruptcy protect?

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This entry was posted on Friday, October 30th, 2009 at 9:18 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Can One Protect Their House, On Which They Owe A Mortage, By Declaring Bankruptcy?”?”

  1. David M Says:
    October 30th, 2009 at 10:23 am

    Your mortgage is secured by your home. If you don’t pay your mortgage, the bank owns your home. Best to sell the house now, get some money out of it and rent until you get back on your feet or go on disability. Good luck to you.

  2. AnswerMa Says:
    October 30th, 2009 at 3:57 pm

    Assuming you are an individual the primary method of protection will be through a Chapter 13 Bankruptcy.
    Generally speaking a Chapter 13 Bankruptcy will allow you to take all your past due monthly payments and pay them out over the next 60 months. It will stop the mortgage company from foreclosing and allow you to pay pennies on the dollar (if anything) on unsecured debt including the medical bills. You will need to have some income so that you can show that you can make your monthly bills but it is my understanding that disability payments qualify as income.
    Appositely, you may also file bankruptcy so as to stop any foreclosure and then petition to sale your property and use the money to pay your bills and take other action authorized by the bankruptcy court including that of paying down the mortgage on your primary residence.
    Bankruptcy is fact sensitive and you should consult an attorney certified in consumer bankruptcy law (assuming you are a consumer).
    The bank DOES NOT OWN YOUR HOME but rather they have a security interest in the property. They cannot foreclose on that interest and sell the house once you file bankruptcy without permission of the court.

  3. Jennifer Says:
    October 30th, 2009 at 10:32 pm

    Hi,
    I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate. I came across this company on NBC News Special Edition.Check it out here:
    http://click.linksynergy.decenturl.com/credit-solutions-credit-consolidatio

  4. Cristy C Says:
    October 31st, 2009 at 3:04 am

    Depending on what your income and family size is they allow some exemption talk to a lawyer that does free consultations and he can give you specifics

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