Legal Question in Bankruptcy in Wisconsin

Yes, one can still sell a house following a discharge in a chapter 7 bankruptcy, provided that you still own it and can sell it for enough to pay any liens which may still be on it (or get permission from the lender to do a short sale). WI law allows one to keep a home through bankruptcy so long as your equity in it after subtraction of liens does not far exceed $75,000 or $150,000 for a married couple. Mortgages usually survive bankruptcy intact; the only thing usually being discharged is your personal obligation to pay (and it's flip side, the creditor's right to garnishee your income or go after other assets if they cannot resell the house after foreclosure for enough to pay off the loan). However, even you no longer have a personal obligation to pay, the decision not to pay still carries with it the consequence for eventual foreclosure and eviction, even after a successful bankruptcy. If the lender is refusing to accept payments, a different type of bankruptcy (chapter 13), can force a lender to again accept payments and reinstate the loan. If you are unable to sell and have suffered an income loss, some lenders have also recently started to approve mortgage modifications reducing your payments somewhat, although these are still very rare. You should therefore immediately schedule a consultation with your bankruptcy attorney (or retain other experienced real estate or bankruptcy counsel if you don�t have an attorney) in order to go over these options in more depth. My comments in this public web forum are intended only for public educational purposes and are not legal advice specifically tailored to you and your case. Instead, you should retain a lawyer in order to meet your legal needs, since I will be taking no action on your case. Disclosure of confidential information in a public web forum is not recommended and is always subject to being used against you in court. You are welcome to contact my Racine, WI office at 262-633-3090 or email me at [email protected] for further information. Web forum answers may contain attorney advertising materials.