Legal Question in Bankruptcy in California
if we declare bankruptcy Chapt. 7, do we owe anything on our house we live in if we have a 1st and 2nd mortgage?
3 Answers from Attorneys
Personal liability is eliminated, however the mortgage liens will still attach to your home. You still need to pay for the house if you intend to avoid foreclosure.
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If you owe considerably more on the 1st than what the house is worth, you may be able to avoid paying on the 2nd because they will not foreclose until the house is worth enough to return a substantial amount after paying off the 1st.
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