Legal Question in Bankruptcy in New York

house salvage

i have currently gone through a divorce which has taken every dime that i had, and alot more that i didn't. i have amassed a substantial debt. i have also concluded that my only recourse is to file for chapter 7 bankruptcy. as i can tell i qualify under the new guidelines.

My question is about the mortgage loan. a few years ago i refinanced with a 15 yr term and don't want to lose this loan. it saved me 100k. If i file for chapter 7 will i lose this loan?

i was told that the loan would be assigned to a trustee of the estate, but i am confused if this means that i will lose the loan or not.

any help you can provide will be of great assistance.

thank you.


Asked on 6/20/06, 9:30 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: house salvage

Your mortgage loan can probably be "reaffirmed." That means that you agree, post-petition and with the court's consent, to continue paying the mortgage on the same terms as you had pre-petition. Talk with your attorney (and do hire an attorney to take you through the bankruptcy process if you haven't already; the 2005 changes are complex) about your particular situation.

Bankruptcy is not about becoming homeless; no one really wants to kick anyone out of their home. Mortgages are among the easiest loans to get court approval for reaffirmation for.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 6/21/06, 8:26 am


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