Legal Question in Bankruptcy in Illinois

rent to ownhouse and owner files bankruptcy

We have been living in this home for 5 yrs and paying house payments. The loan is in my cousins name and she filed bankruptcy. Is there any way we can keep the house? Our credit isnt good enough for a loan.


Asked on 5/15/02, 10:45 am

2 Answers from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: rent to ownhouse and owner files bankruptcy

Merely filing a bankruptcy case does not mean that the mortgage holder/company can foreclose, especially if the mortgage is not in arrears. The real question here is whether you have a contract for a deed.

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Answered on 5/15/02, 6:12 pm
Bruce Buckrop Bruce Buckrop

Re: rent to ownhouse and owner files bankruptcy

There is a seventh Circuit case that protects homeowners, in cases where homeowner files bankruptcy, and the mortgage is not behind, the court ruled that mere filing of bankruptcy relief does not give reason to mortgage company to be able to foreclose if all other conditions of the mortgage are being met.

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Answered on 5/15/02, 12:00 pm


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