Farwell, TX Bankruptcy Law Firms & Lawyers

Without knowing more about you and your situation it's difficult to say which chapter of bankruptcy is appropriate or even if it is possible to prevent the foreclosure with bankruptcy. Most bankruptcy attorneys offer free consultations. Be prepared to answer questions such as: how much income does the household earn, how much does the household need to spend on living expenses, what types and how much debt you have, past due amounts on any your mortgage(s), what types of assets you have. The devil is in the details. Talking to a bankruptcy attorney can help you formulate a plan.

The following answer applies to California jurisdiction only. I don't know of any local bankruptcy attorney who would condone or suggest to a client that they reaffirm a mortgage debt. It is not in your best interest to do that so the fact that you did not reaffirm is not a bad thing. If at some point you can't afford to make the payments anymore because you have filed and received a discharge in bankruptcy AND because you have NOT reaffirmed the debt you can walk away from the property. The only remedy the creditor(s) have is to take the property, they cannot sue you for any deficiency or attempt to collect from you. The protection of the bankruptcy discharge makes any such collections illegal. A loan modification, should you get one, would not change this result. Refinancing however would because when you refinance you get a new loan and in your case it would be a loan acquired after the bankruptcy had already been filed. Hope this perspective helps. Take care.

The mortgage will most likely be sold and transferred as an asset of the bankruptcy and you will have to continue paying the mortgage to the new holder.