Mentone, TX Bankruptcy Law Firms & Lawyers

Depending on your income and the amount of equity you have in your home, you may qualify to file a Chapter 7 bankruptcy. A Chapter 7 bankruptcy would discharge the debts owed to the credit card and utility companies.

Hard to imagine how you managed to pay that much money if you did not want to continue paying and now you are concerned about it after so long. While the personal liability for the mortgage/deed of trust is discharged in bankruptcy, the debt is still collectable if the bank wants to sell the house in foreclosure and get whatever the sale proceeds are received because it is secured by a lien (a deed of trust or mortgage) and the lien is not affected by the bankruptcy. I would guess that the bank will now claim that you paid voluntarily which you are allowed to do after bankrutpcy. I doubt that you can get it back but your situation is so unusual that you need to consult with an attorney who can review the documents and get all the facts.

Most banks in our area will not consider a mortgage application until two years have elapsed since the discharge in the case. You can get around that if you have a nice deposit to put down to create equity in the home, but that is usually the only exception.