What happens to your mortgage payments when you file bankruptcy?

What happens to your mortgage payments when you file bankruptcy?

Those payments don’t show at all. Instead your mortgage will just show “included in bankruptcy.” “Hold on” people say, “I didn’t include my mortgage.” Actually you did. When you file bankruptcy, you “include” everything. That’s the law.

Do you have to keep paying your house if you file bankruptcy?

You pick and chose what debts you want to keep paying–keep paying the house if you want to live there; keep paying the car if you need it to get to work. But you don’t pick and chose what debts are covered. (The bankruptcy covers–discharges–your credit cards, medical bills, debt collectors, bank loans, car payments, mortgages.

What happens to your credit when you file bankruptcy?

(Remember though to pay your home owners association!) Also, after bankruptcy late payments don’t count against your after bankruptcy credit. If you complain to the mortgage company about your credit report, they will tell you that “you should have reaffirmed your mortgage.” Reaffirming takes the house out of the bankruptcy.

What happens if I move out of my house after bankruptcy?

If real estate values don’t recover–or drop again–and you can’t sell the house when you are ready to move, you are still protected. You can move out and not owe them anything. (Remember though to pay your home owners association!)

How are consumer debts defined in the Bankruptcy Code?

Consumer debtsare defined in 11 U.S.C. § 101(8) as “incurred by an individual primarily for a personal, family, or household purpose.” The bankruptcy discharge relieves you types of bankruptcy that are available to individuals Individuals who meet the qualifications may file under one of four different chapters of the Bankruptcy Code:

Why do my house payments not show on my credit report?

After bankruptcy: My house payments don’t show on my credit report. One reason to file bankruptcy is to get back to good credit. Once your credit has gone bad, bankruptcy, for most people, is the fastest way to fix it.

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