Legal Question in Bankruptcy in Massachusetts

bankruptcy and home mortgae

Five years ago I was laid off from my job of 17 years

I could not find another job in my field (PrePressinPrint shop)

so I took a course in building and trades

Started a business using credit cards as my funding well needless to say I went from about $130,000 in total indeptness to about $280,000

from what i've read you can not wipe out the mortgage because it is secured dept

but the dept was because I refinanced my home to pay off the credit cards my home also is not worth what mortgage I have on it

I'm upside down what should I do or what can I do?


Asked on 5/12/08, 2:12 pm

2 Answers from Attorneys
Richard Ravosa Law Offices of Richard S. Ravosa

Re: bankruptcy and home mortgae

In the realm of Bankruptcy, you can keep the house, but you would be likely enter in to a reaffirmation agreement which means you will continue to pay the debt. You could surrender the house and walk away from the debt.

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Answered on 5/12/08, 2:26 pm
Christopher Di Giacomo Di Giacomo & Gruss

Re: bankruptcy and home mortgae

Sorry to hear about your predicament. You do have some options. First, do you want to keep the house? From your aforementioned facts, there appears to be no equity in the house. If you want the house, then I would recommend a Chapter 13 BK. This allows you to keep the house and you make payments to all your creditors at about 10 cents on the dollar. If you do not want the house, then a Chapter 7 allows you to wipe out all your unsecured debt. However, you will give up possession of the house. If you have any more questions, please feel free to contact me.

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Answered on 5/12/08, 9:38 pm


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