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Can i lose my home?

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Can i lose my home in a chapter 7 bankruptcy even though i am current and always have been? It is an FHA loan and i have a 2nd mortgage which is current as well. Could the mortgage co take it from me? I intend to reafirm both mortgages. If i am making the mortage payments why would the mortgage care who is making the payments, as long as they are getting thier money? I have excessive credit card debt which is why i am considering chapter 7 bankruptcy. I can live without the credit cards...but i need my house.
Is chapter 13 the better alternative?


Senior Member
I get the feeling from some of your questions that you've not talked with a lawyer. You really should.
As to the first question about the mortgage. No. the mortgage company could care less who makes the payments as long as they are on time and in the agreed amount. The problem is, the trustee overseeing your bk will care an awful lot. Do you have a source of income you've not disclosed or, do you have an agreement with a relative, etc.? If your income doesn't allow you to make the payments, and you wish to reaffirm, the trustee will demand to know how you're paying for the home.
As to chapter 7 vs 13 well, that depends to your income vs expenses. If your income exceeds expenses by a particular amount, you may have no choice but be forced into chapter 13. It also depends on your total mix of assets. DO you havecash value in a life insurance policy, do you have an IRA?
If you've not seen a lawyer, do so and tell them the entire situation.

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