Legal Question in Bankruptcy in Florida

I filed Chapter 7 Bankruptcy almost two years ago. My house was listed in the bankrupcy, but I have continued to make my payments as well as my second mortgage. Because of the real estate market in Florida currently, my house has dropped in value from about 200,000 to 68,000. I owe approx. 160,000 between both mortgages. I was just informed my company is moving my position from Frot Myers Fl. to Philadelphia, PA. I can move with it, or be layed off. What will happen to me and my credit, if I leave the house and stop making the payments. I am in a specialize profession and would find it almost impossible to find another job making the needed amount of money to allow me staty in my house. I have not signed any forms to re-affirm either of the mortgages.

Asked on 11/30/09, 8:42 pm

2 Answers from Attorneys

Steven Meyer CPLS, P.A.

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If you don't pay your mortgage, then the bank will eventually file a foreclosure lawsuit. The case would probably take a while to complete. However, in the meantime, if you intend to move out of state, then you have no real incentive to delay the foreclosure. If you intend to stay in the area, then you probably want to actively defend the foreclosure case.

You could also file a Chapter 13 bankruptcy, which would permit you to give back the house to the bank, but you'd have to pay some money back to creditors over a period of three years or more. Depending on your income and expenses, that may be a good idea. We offer a free initial consultation and would be happy to discuss the situation with you.

Answered on 12/05/09, 11:03 pm

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