If my home loan modification is denied, can I claim bankruptcy on late payments?
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If my home loan modification is denied, can I claim bankruptcy on late payments?
Asked on November 1, 2013 under Bankruptcy Law, Maryland
Answers:
Brett Weiss
Answered 10 years ago | Contributor
You can discharge the entire debt in a Chapter 7; you can't wipe out just missed payments, and if you can't bring the loan current, you can lose the house. You can get time to catch up the missed payments in a Chapter 13.
Terence Fenelon / Law Offices of Terence Fenelon
Answered 10 years ago | Contributor
You must state the loan deficiency on the petition, but it won't be discharged. The only way to obtain any forgiveness of past due loan payments owed to a first mortgage holder is to file a chapter 13. The late payments will not be forgiven (discharged) but you may be able to catch up over the term of the plan, while still paying a percentage to other creditors. I would advise you to get counsel. A chapter 13 can be hazerdous if you don't know what you are doing.
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