Legal Question in Bankruptcy in Nevada

Bankruptcy Chapter 7

Hi,

I'm thinking about filing for chapter 7 BK, but I want to keep my home.

I have an interest only loan and pay 710.00 for my mortgage. I do not have any other assets other then my home, car, which is paid off and worth about 7000.00 and my IRA.

If I file for BK can I have my mortgage loan modified or should I try to do this before filing for BK?

Thanks for your help and time! :)


Asked on 7/21/09, 2:06 pm

2 Answers from Attorneys
Jeffrey Cogan Jeffrey A. Cogan, Esq., Ltd.

Re: Bankruptcy Chapter 7

You should probably try to do the loan modification first. This way you can threaten the bankruptcy and maybe use that as leverage.

You cannot modify a loan in bankruptcy. You can only get off loans that are completely unsecured through a Chapter 13 but there has to be no equity in the house for that loan.

Read more
Answered on 7/21/09, 2:20 pm
Dorothy Bunce

Keeping House & Modifying Loan in Chapter 7

This is one of the rare times when I disagree with Jeff. I have found that it is easier to submit a loan modification during or after the Chapter 7. Why? If you modify the loan before filing, the lender may use the bankruptcy as an excuse to cancel the loan modification agreement. But if you are in Bankruptcy, there is the real threat that you could walk away from the home. Also, when you are in bankruptcy, it is easier to work directly with the attorney for your lender instead of dealing with the hordes of applicants submitting applications at the retail level.

Read more
Answered on 7/21/09, 4:55 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Nevada