Legal Question in Bankruptcy in Indiana

Re: Chapter 13 and mortgage

When you file bankruptcy, you must list all your debts, even those you wish to reaffirm. A chapter 13 allows you to catch up on past due mortgage payments to save your home and keep it from being foreclosed.

You misunderstand the term "charged off" when used by a creditor such as your second mortgage-this does not mean you no longer owe the debt-a charge off is simply an internal accounting policy whereby the bank writes off your loan as uncollectible and then takes it as income when they eventually collect it-it does not mean they have forgiven you from having to pay it. A charge off simple makes the bank's financial picture stronger than it really is.

Consult a bankruptcy specialist immediately-before the lender's attorney files the foreclosure-it could save you hundreds of dollars in court cost and atty fees that will be added to your loan. My firm, like many others does not charge for the initial consultation-Good Luck!