Legal Question in Bankruptcy in Nevada

Chapter 7 & Real Estate Loans

There is no news on whether Chapter 7 will be available next year. It's up to Congress.

If you want to keep your home, you must pay for it - both the first & second mortgages (or deeds of trust). You do not need to reaffirm if you keep the payments current. If you are behind on a mortage payment, the mortgage company can bring an "adversary action" against your bankruptcy asking for a "lift stay." This will result in the company's having the Court's OK to begin foreclosure proceedings. The Homestead protects your home from other creditors - but NOT from mortgages or deeds of trust. Otherwise, anyone could buy a home, file bankruptcy & not pay for it.

Hope this helps! If you would like to file, I hope you will call me first!