Legal Question in Bankruptcy in Virginia

Mortgages

When filing bankrupty, can I charge off my second mortgage and just keep my first since in default with first and they are trying to foreclose only for the amount owed on the first? Once the discharge is final and the first still tries to foreclose, what happens with the second that I have still been paying?


Asked on 12/03/08, 11:19 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Mortgages

If you file a Chapter 7, you need to keep current on both or they can foreclose. If you file a 13, you may be able to strip off the 2nd and treat it as unsecured, but only if the first is for an amount larger than the value of the property, or if the property is not solely your principal residence. This is complicated, so make sure you are represented by competent bankruptcy counsel.

We handle bankrupty matters throughout Virginia, so feel free to contact me if you have further questions or desire legal representation.

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Answered on 12/03/08, 9:41 pm


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