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The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories.
Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Dear Bankruptcy Adviser, I filed a Chapter 7 bankruptcy that was discharged in I was paying my second mortgage loan to the bank for 4 years without a reaffirmation agreement.
I never failed to make a payment during that time. I recently learned the bank wrote off that loan and transferred it to a credit collection agency, which I have not heard from. If the bank wrote off the loan, it means the loan is defunct, right?
Does it also mean the collection agency cannot legally do anything since I completed my bankruptcy? Dear Mike, Great questions, but you are not clear on a few crucial issues.
I get this question a lot, and while I know you are just hoping to have some equity in your house, you still have to deal with the second mortgage. You are right that the second mortgage lender cannot sue you.
Because you received a discharge in your Chapter 7 bankruptcy and you did not reaffirm the loan, the lender no longer has the right to sue you to enforce its loan. You had to reaffirm the loan while your bankruptcy was active in order to re-establish liability. Take control of your personal finances. Life is always full of unforeseen circumstances. Employment difficulties, skyrocketing interest rates, medical bills, unexpected expenses — the list goes on as to what might push a stable financial situation beyond the breaking point.
However, there are experienced attorneys at our firm, Duffy Law, LLC, that can assist you in obtaining a fresh start through Chapter 7 or Chapter 13 bankruptcy protection. First you should contact us to determine what options are available to you. Most individuals qualify for bankruptcy protection, and even if it appears your income might exceed the limit, there are creative options available that our firm might be able to provide, allowing you to qualify where you otherwise might not.
At some point the creditor harassment, continual payment problems, and crushing debt needs to stop. When you are faced with debt that you are unable to repay, bankruptcy protection and discharge allow you to move on with your life. Contact Duffy Law today for a free consultation to find out what we can do for you. Below is some important information from Duffy Law regarding consumer bankrupcy.
We're also happy to answer any questions you might have with a free consultation. Chapter 7: Most people file Chapter 7 bankruptcy. More information is below. Chapter This is generally only for individuals who continue to generate substantial income, but their debt is overwhelming. Some debts are cancelled or modified and a payment plan is imposed upon the creditors for the debtor to reorganize the debt.
How do I know if I qualify for Chapter 7 bankruptcy? Will I lose everything? Can I keep my house? What debt will get discharged? How will this affect my credit score? Will the creditors stop bothering me? How much does it cost? If your expenses are greater than your income after cost of living, you may qualify for Chapter 7 bankruptcy.
A means test compares your income to the median income in your state, while taking into account a number of other factors. Generally, if your income exceeds the threshold, you do not qualify for Chapter 7 bankruptcy. However, are are a number of other factors that an experience attorney can help you utilize to qualify for bankruptcy protection:.
Depending on what you own, the answer is almost always NO. There are exemptions for certain things you either need to live, work, or are below a certain value. Many items are exempt from bankruptcy. The experienced attorneys at Duffy Law can assist you in utilizing all of the exemptions available to you, as well as ensuring the assests in question qualify for the chosen exemption.
Then can potentially foreclose on your house. There is an option to reaffirm the debt, meaning you and the creditor agree that you will still be liable for the debt after bankruptcy, and you get to keep the property. Even if the creditor would agree, be very careful when considering this option. Most legitimate debt is eligible for discharge in bankruptcy, but not all debt or obligations are automatically discharged.
Below is a partial list of debt which generally survives bankruptcy:.