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Chapter7 Possible Forclosure

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trndy2000

Guest
What is the name of your state? alabama.
we were discharged from chapter 7 in december of 99. we have since had trouble making our 1st and 2nd mortgage payments on time. we have set up several repayment plans and still end up behind. it is almost impossible at times to continue this way. we do not know what action we should take? if we end up in forclosure will we have to pay back what is left? the only thing we re-affirmed at the bk hearing was our vehicle. no one else showed up to re-affirm. we told the lawyer we wanted to keep our house and car. l
 


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dorenephilpot

Guest
If you can't keep up with your payments, then the first- and second-mortgage creditors are going to foreclose.

If you end up being foreclosed on and the equity in the home isn't greater than what you owe, then you are responsible for any balance due.

Since you filed in '99, you can't do another chapter 7 BK until 2005.

You could be a candidate for a chapter 13, which might allow you some time to get caught up.

The question is: Do you WANT to? Sounds to me like the house is over your heads and you need to downsize.
 
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totallybroke

Guest
Did you include your mortgage company at the time of your bk, if you did and did not reaffirm then if you walk away it would be included in your bk and you would not be liable for the balance due. Get your bk papers out and make sure you included your 1st and 2nd mortgage in the bk before you proceed. You might want to consult with your bk attorney just to make sure.
 
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dorenephilpot

Guest
My answer, of course, is assuming that you reaffirmed those debts.

If you did not reaffirm those debts, then as long as they were included as creditors in your bankruptcy petition, you can walk away from them.
 

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