Legal Question in Bankruptcy in Virginia
Bankruptcy and Second Mortgages
I declared Chapter 7 Bankruptucy last year and I am finding it difficult to pay a second mortgage on an investment property that was not included in the bankruptcy. Can I file Chapter 13 to help with the second mortgage or can I still surrender the second mortgage without giving up the property?
2 Answers from Attorneys
Re: Bankruptcy and Second Mortgages
You can file Chap. 13, which may help with the second mortgage (if it is fully or partially unsecured, or if it has less than 5 years to go, or if it is in default that you can cure). You cannot just stop paying the mortgage w/o losing the property. However, unless you reaffirmed you should be able to stop paying and surrender the property w/o further personal liability. I don't understand your reference to the property not being "included" in the prior Ch. 7. If you failed to list it as an asset, or the mortgages as a liability, that is a felony.
Re: Bankruptcy and Second Mortgages
You may be able to file a chapter 13 eventhough you filed a chapter 7. Under certain circumstances, you may be able to strip the lien of the second trust. I am not sure how to respond to the issue of "investment property that was not included in the bankruptcy".
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