If I have a $400 monthly house payment, the place we financed the house through went bankruptcy, is it legal for the bank to still charge the $400 monthly payment?

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If I have a $400 monthly house payment, the place we financed the house through went bankruptcy, is it legal for the bank to still charge the $400 monthly payment?

Asked on May 6, 2013 under Bankruptcy Law, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If by "the place we financed the house through went bankruptcy," you mean that the lender filed for bankruptcy, then yes: they can still charge you the monthly payment. When a business (or person) files for bankruptcy, it affects what they owe to others, not what others owe to them: someone in bankruptcy may still collect on their debts and obligations.

If you meant something else, you should re-post your question.


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