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Bankruptcy is a bummer. No one has ever said “OH MAN! I’m so excited to file bankruptcy! It’s going to make everything so awesome!” That being said, sometimes it needs to be done. If you have explored all of the alternatives and have decided to file bankruptcy, it’s important that you know what your options are and how they will impact your existing mortgage, or your future ability to obtain home loan financing.

What’s the difference between Chapter 7 and Chapter 13?

Chapter 7 bankruptcy is also known as total bankruptcy. It’s a wipeout of many (or all) of your debts. Also, it might force you to sell, or liquidate, some of your property in order to pay back some of the debt. Chapter 7 is also called “straight” or “liquidation” bankruptcy. Basically, this is the one that straight-up forgives your debts (with some exceptions, of course).

Chapter 13 bankruptcy is more like a repayment plan and less like a total wipeout. With Chapter 13, you file a plan with the bankruptcy court detailing how you will repay your creditors. Some debts will be paid in full, some will be paid partially or not at all, depending on what you can afford. Chapter 7 = wipeout. Chapter 13 = plan.

How does Chapter 7 bankruptcy affect my existing mortgage?

When you file Chapter 7, your existing property will either be deemed exempt or nonexempt. Exempt means you will be able to keep the property throughout the bankruptcy process. Nonexempt means you will either be required to surrender the property or pay its value in cash as a part of the bankruptcy. In some cases, people are allowed to keep nonexempt properties. It all depends on the bankruptcy trustee and how they choose to handle the property.

To understand how chapter 7 impacts your existing mortgage, you must first understand the difference between a loan and a lien.

When you get a mortgage, your mortgage company gives you a loan. They let you borrow money in order to buy a property. When they do that, they have a lien on the property. A lien is a right or interest in the property that the mortgage company has until the debt (or loan) is paid in full.

When you file Chapter 7, you are no longer legally obligated to repay the loan. “Legally obligated” are the key words here because Chapter 7 does not get rid of the lien on the property. Your lender still has a right to the property if the debt is not paid. So basically, you don’t have to pay your mortgage. But if you don’t you will lose your property because your lender will likely enforce the lien they have. If you are able to keep your home as part of Chapter 7, it’s probably a good idea to do everything in your power to keep paying your mortgage.

How long do I have to wait after Chapter 7 to get a new mortgage?

Most reputable lenders, including Quicken Loans, will not consider you for financing until two years after the Chapter 7 bankruptcy has been discharged. If you find a lender who will consider you prior to two years, make sure you are fully aware of all the terms and conditions included in your mortgage. Really scrutinize the details and look at all the costs to ensure you’re not being scammed.

Ok, what about Chapter 13? What happens with my existing mortgage?

With a chapter 13 bankruptcy, you will not lose your property. You will include details on how you plan on paying your mortgage in your repayment plan. In most cases, an automatic stay is issued once Chapter 13 is filed. An automatic stay means that creditors must stop collection efforts. It was designed to temporarily halt foreclosure and stop repossession of homes regardless of the stage of the foreclosure proceedings.

How long do I have to wait after Chapter 13 to get a new mortgage?

Most reputable lenders, including Quicken Loans, will not consider you for financing until at least one year after the Chapter 13 bankruptcy has been discharged. Some exceptions are made for US veterans. If you find a lender who will consider you prior to one year, make sure you are fully aware of all the terms and conditions included in your mortgage.

 

Filing for bankruptcy is a big decision that has a lot of implications for your current and future financing. Make sure you discuss your options with a lawyer or your financial advisor before you stop making payments or file for bankruptcy.

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This Post Has 80 Comments

  1. Hi I would like to file chapter 7 bankruptcy I owe more than 50,000 dollars a few months ago I en up in the hospital for 4 days and had to take bed rest for another 4 days the bills just got out of control and here I am if you can help me would you call me at +******************* thank You

    1. Hi Sharon:

      I very much hope that you’re well on your way to recovery. I’ve also removed your phone number because this is a public forum. We are a mortgage company. You really need to contact a bankruptcy attorney in your area to go over your options and figure out what’s right for you. I wish you luck!

  2. The afternoon my name is Mr. Wright I want to house in Jackson you’re a half ago I file for a Fannie Mae loan separated from my wife was out of the house for six months she didn’t make any payments I filed for Chapter 13 got a payment plan through Trenton New Jersey I made the payments to a trustee for two years at that point the PMI doubled the mortgage went up they claim I couldn’t afford to make the payments it took me back to court and said I didn’t make enough money I filed a Chapter 7 going into foreclosure they said it was excessive filing a Chapter 7 it was dismissed and I lost the house lots of Robo signing tried to work out numbers and it didn’t work I’ve been sitting in a rental house for year paying all my bills on time my credit report is 640 and I’m looking to buy a house is Is there a lender out there or they can help me

    1. Hi Wright:

      That sounds like a bit of a complex situation. I would recommend speaking with one of our Home Loan Experts at (888) 980-6716. They would be able to go over the exact timing for your situation and any options you might have. Hope this helps!

  3. Hi, we file bankruptcy 13 almost 5 years ago now and will be done with 7 more payments due to medical issues and lost of income. We’ve been good in paying our monthly payments . However, we found out that the bank was not applying our payments correctly? its a pain in the butt. ant advice on this? thanks!

      1. Hi Maria:

        The best I can do is tell you to talk to your bankruptcy attorney. They would be in the best position to give you legal advice around payment application during your bankruptcy. Good luck!

  4. I have a mortgage with my partner, and recently lost my job. The mortgage payments are made by him, however, my personal CC debt is around 50K, and was considering bankruptcy as I cant keep up. If I were to file, would my mortgage be involved, or just the CC debts.

    1. Hi Jon:

      I would recommend talking to a bankruptcy attorney about the best way to structure this. However, it’s possible to declare bankruptcy without including your mortgage and just keep making the payments in order to keep the house. You should know that regardless of whether your mortgage is included, it will be at least a year before you can apply for any new mortgage financing and you would have more options after 2 – 4 years. Good luck!

  5. IAM 2YRS. INTO A CHAP.#13 BANKRUPTCY. ALL MORTGAGE PAYMENTS & TRUSTEE PAYMENTS ARE CURRENT,BUT NOW THIS MONTH,JUNE,2018. MY MORTGAGE COMPANY IS RAISING MY MONTHLY/PAYMENT , $395.95/MO. SAYING THERE IS AN ISSUE WITH T&I IN ESCROW. THEY KNOW IAM B-RUPTCY, AND MY GUT TELLS ME THEY WHAT THIS HOUSE. SO HOW DO RESOLVE THIS SITUATION AND STAY IN MY HOME. RECENTLY UNEMPLOYED FOR 3 MONTHS, AND NOW THIS? CAN THE MTG. CO. LEGAL DO THIS ? WHAT CAN I DO?

    1. Hi Dean:

      I can assure you the mortgage company doesn’t want the house. Foreclosure is a losing proposition for you and the mortgage company loses money as well. I would check with the city and see if your property taxes are going up and then I would talk to your homeowners insurance company. If your taxes have gone up,, you may be able to get relief from the city by working out some sort of payment plan. Hope this helps!

  6. I have a mortgage with my ex who has made it so I can not be there with my credit and that on there I am not able to get my own place. I was told to file and that he would lose the trailer as well (which is fine he has options) is that the case or could I file and he stay on? They wont take my name off because I was approved without him. He has bad credit as well and wont be approved on his own. How does this work?

    1. I would make sure you speak with a bankruptcy attorney about this if I were you. You do have the option to not include the mortgage in the bankruptcy, but I think you need to determine what’s best for you. I will tell you that if it’s not included and he continues to make the payments, he should be able to stay there. There are certain options which could allow you to get a mortgage down the line without having that mortgage included in your DTI if you can prove he was making the payments all this time. I’m going to recommend you speak with one of our Home Loan Experts about this at (888) 980-6716. However, if you were to file bankruptcy, the soonest we can help you with any kind of loan would be one year after discharge or dismissal. Hope this helps a little bit.

      Thanks,
      Kevin

  7. Hi I filed chapter 7, 9 years ago. I did not reaffirm my mortgage and I’m just upside down with making any money off the house. I have voluntary been making payments. But I am just wanting to walk away. I have recently applied for a mortgage and was conditionally approved. Now I’m being told I have to include this mortgage as part of my debt? I don’t understand that.

    1. Hi Nicole:

      If you’ve been making the payments and living in the home, you might still be responsible. I would talk to your bankruptcy attorney if you can, but you’ve been living there and making the payments, so you may not just be able to walk away without taking a credit hit for the foreclosure. I would talk to your attorney.

      Thanks,
      Kevin

  8. Hello. We have been struggling with making our mortgage payment since Nov 2017. We are averaging 2 month’s behind and are considering bankruptcy. We definitely want to keep our house, but we need a month or two to “catch up”. Two months would be best so we can still eat, pay water, electricity, etc. We’ve only had the house for two years. Do you think a lien holder will allow me to file bankruptcy, not pay my mortgage for 3 months and at the time of bankruptcy settlement allow us to “clear the slate” and restart the clock and begin making payments again? Maybe add the missed payments to the end of the loan?

    1. Before you take a step as drastic as bankruptcy, I would recommend talking to your mortgage servicer. They may be able to help you with a temporary mortgage modification. While this does have a credit impact, it won’t be as bad as the bankruptcy. If you still need the bankruptcy due to other factors, I would work with your bankruptcy attorney to make sure that bankruptcy is structured in such a way that you can keep the house as long as you do what you need to do to get and stay current on the payments.

      Thanks,
      Kevin Graham

  9. I recently apply for chapter 7. I own my home and paying on time every month do a car accident became disable my kid move in and help me pay the morgage
    Do to a car accident and became disable obligated to close my busines. I dont own credicard but dr bills wish the car insurance was. Not paying had lawyers coming after me and the busines to i had in my credict and a loan not mine. Trying yo get rid of that will i keep my home were i live with my kids and gradkids wish i pay every month on time

    1. Hi Marilyn:

      It sounds like your situation is a bit complex. We really recommend you speak with an attorney who specializes in bankruptcy.

      Thanks,
      Kevin

    1. Hi Joseph. The short answer: yes. If you file for Chapter 7 bankruptcy, you will either be able to keep the property throughout the bankruptcy process or required to surrender the property or pay its value in cash as a part of the bankruptcy. If you file for Chapter 13 bankruptcy, you will not lose your property, but you will have to provide details on how you plan on paying your mortgage in your repayment plan. Either way, filing for bankruptcy is a big deal and affects you in many ways. The best thing to do is to discuss your options with a lawyer or your financial advisor before you stop making payments or file for bankruptcy. I hope this helps! – Allison Hendricks

    1. Hi Gloria:

      If you file chapter 13 and your house is included, there will be details in your bankruptcy plan as to how that debt is to be repaid and on what schedule. In terms of what happens after the bankruptcy, I recommend talking to a bankruptcy attorney.

      Thanks,
      Kevin Graham

  10. I am currently owe for Nov, Dec and now January which i will make one payment before the end of Jan. I’ve been trying to get my property prepared for me to move back into, i previously was renting it out n my last tenants i had to evict n redo my place. I can’t seem to catch up staying 2 months behind but im halfway there as far as moving back in. I want to keep it and i can definitely afford to. I already refinanced in the past with a home equity loan n of course i owe more than it’s worth. Should i file a chapter 13? Does it matter that i’m not physically back in the property yet?

    1. Hi Chrissy:

      If you’re considering filing bankruptcy, the best thing to do would be to contact a bankruptcy attorney. We can’t really give your advice on that. I don’t think it will matter in terms of the bankruptcy whether you’re in the property.

      Thanks,
      Kevin Graham

  11. I separated from my husband in 11/2011 and in 03/2013 I filed chapter 7 on our mortgage and my debit. He remains in the home and makes the mortgage payments. in 2015 we divorced and since my bankruptcy that was filed on the house all I had to do was quick claim the deed to him . I have since rebuilt my credit and will soon be trying to purchase my own home. I do not want to have any sudden issues arise when starting this process. It makes me nervous that the stayements for the mortgage still have my name on them, am I still responsible in some way and he will have to refinance to completely clear me?

    Thank you for your time

    1. Hi Jennifer:

      He does have to refinance in order to completely clear you. Until then, you’re still responsible. The other thing I want to make sure you’re clear on is that you have to wait at least a year after the bankruptcy is discharged or dismissed to have any options at all and you have an FHA loan option after two years.

      Thanks,
      Kevin Graham

  12. My husband and I have just been discharged from a chapter 7 bankruptcy and I have been working to rebuild my credit and have been successful as my credit is already back to a 600 in just a little over a month. If your credit is decent is it still mandatory to wait two years before applying for a home loan? If so, it seems unfair considering lenders are aware that they wouldn’t lose any collateral since the applicant cannot file for another 8 years which lowers the risk for them.

    1. Unfortunately, lenders don’t set bankruptcy policy. In many cases, that’s Fannie, Freddie, FHA and VA. However, we would be able to look into options for you starting a year after discharge.

  13. I filed Chapter 7 bankruptcy but have not been to court yet. I did not include my car or house. I have continued to pay my mortgage and plan to reaffirm it. How is this reported to the credit bureau and how does it affect my credit? And will the mortgage company let me reaffirm?

    1. Hi Denise:

      From a credit perspective, it doesn’t affect your score one way or the other depending on whether it’s affirmed or reaffirmed. It’s just whether it’s a chapter 7 or 13 that matters. A chapter 7 bankruptcy will stay on your credit report for 10 years, although the negative impact on your score will lessen the older it gets. You definitely want to reaffirm the mortgage though. If you don’t, the lender will consider it a foreclosure and you will have harder time getting a mortgage in the future. If you keep making your payments on time, there should be no reason for them not to let you reaffirm it. Hope this helps!

      Thanks,
      Kevin Graham

  14. We filled chapter 13 in 2011…discharged June 2016
    Included in BR was our 2nd mortgage but stayed current on 1st mortgage. Looking at credit report, mortgage payments were not reported what do we do??

    1. Hi Jackie:

      I’m not totally sure how that works and you might have to talk to your bankruptcy attorney. However, I’m going to recommend you talk to one of our Home Loan Experts. They may be able to tell you more about how bankruptcies are typically handled from a credit perspective. Go ahead and give us a call at (888) 728-4702.

      Thanks,
      Kevin Graham

  15. I want to file for bankruptcy. I’m going and am 15k in debt with credit card debt. I don’t want to destroy my credit more than I already have but I cannot afford to payoff all these debts. I want to try, but I know with my income that it is not possible. Would filing chapter 13 be a good idea. Or will Chapter 7? How much does it cost to hire a bankruptcy attorney? Also, I don’t have a car and plan on financing a cheap one, If I file for bankruptcy after getting the car, will I be able to keep it?

    1. Hi C:

      Chapter 7 is debt forgiveness and chapter 13 is more like restructuring a payment plan, but I really think you should talk to an attorney about that. I don’t know how much they cost. Maybe look up reviews online. There is no requirement that you include in the car you might get in the bankruptcy. If it’s not included, it probably won’t be affected.

      Thanks,
      Kevin Graham

  16. I filed chapter 13 and was discharged last yr. I included 2 mortgage payments in my bankruptcy, which was paid thru my chapter 13 repayment plan. I’ve paid my mortgage payment every month and my mortgage company reported all my payments to the credit bureau. My mortgage was just sold to another company, this month, and the new company is telling me that my balance has been discharged, any payments i make will not be reported unless i reaffirmed my mortgage. What does this mean? Is a mortgage reaffirmed in chapter 13?

    1. Hi Tom:

      You included two mortgage payments in your bankruptcy and you had a repayment plan separate from the actual mortgage payments themselves. That tells me the mortgages were included in the bankruptcy. If you reaffirm something in a bankruptcy, it means that you agreed to make the payments under the current terms of the loan regardless of the bankruptcy itself and the debt isn’t forgiven. It doesn’t sound like that’s what happened here if you made the payments through a repayment plan. That said, regardless of whether they are reported, you should continue to make the payments in order to keep the house. Hope this helps!

      Thanks,
      Kevin Graham

  17. Our house is going to foreclosure. We don’t want to let our house go, but we haven’t been making mortgage payments because we were trying to

    1. Get a modification. which was being dragged for 2-3 years approved then denied. Our last option is to sell the house, but do you think we are better off filing for bankruptcy? So we can figure out a way to keep the house?

      1. Hi Mi:

        If you’re considering a bankruptcy and want definitive advice, the best person to talk to would be a bankruptcy attorney. However, I can tell you that in any case if you want to keep the house while going through the bankruptcy, odds are you would have to find a way to continue making the loan payments. The lender has a lien on your house and the right to that property if you can no longer make the payments. I know you don’t want to sell, but in a climate of rising property values like the one we’re in, it might end up putting you in better financial shape. These are just some things to think about. Good luck.

        Thanks,
        Kevin Graham

  18. I want to file chp 7 bankruptcy but I want to keep my house and my car is that possible? My credit card debt is out of control. Is chp 7 right for me?

    1. Hi Alex:

      It’s definitely possible to structure it in such a way that you can keep certain assets. In terms of whether it’s right for you, you’re better off talking to a bankruptcy attorney who can help go over the details of your situation and your options. I can help you with some tips to rebuild your credit so that after you come out of the bankruptcy you can make sure you’re in good shape for the future. Good luck!

      Thanks,
      Kevin Graham

      1. My wife and I had a Chapter 13 discharged in October of 2015.
        Since then our Home equity line payment that was included in the bankruptcy and that we were paying interest only on has recently went up 500 plus dollars to pay towards the principal.
        The balance on the HE is $64,955.57.
        We have not made a payment to the HE line since the payments went up 4 months ago.

        Our mortgage is current and has a balance of $72,447.44.

        The total we owe on the mortgage and HE is $137,403.01.

        Our home was appraised a few years back for $145,000.

        We are now separated and are considering no longer paying our mortgage payments also and giving up the house to foreclosure. My wife has moved out and I have no desire to remain here in the long term.

        Based on the circumstances is it better to stop paying the HE and mortgage and walk away from the house or sell it?

        If we stop paying the HE and mortgage does it affect our Chapter 13 bankruptcy?

        How would it affect my wife and I individually?

        Thank you so much
        Al

        1. Hi Al:

          From a credit perspective, it’s always going to be better to try and work out a sale of your house rather than letting it go into foreclosure even if you have to work out a short sale with the lender. In terms of how that affects the bankruptcy, you would have to talk to a bankruptcy attorney about that. However, if you can’t make your mortgage payment and have no desire to stay in the house, I would sell it.

          Thanks,
          Kevin Graham

  19. We filed a BK7 and the final discharge date was two years old this past June of 2016. Although our home was part of the filing, we continue to live in it and have not been late for 3 years.

    My question is this: We are looking to buy another home that would be considered a 2nd home and rent it out a few weeks each year as part of our income. Would we qualify for a 2nd home after filing the BK7? Is there a longer waiting period to qualify for a 2nd home? Our income to debt should be ok with credit scores around 670 and 5 to 10% down. We would plan on keeping both homes. Is this possible? Our current home does not show up on our credit reports of course, so we get no credit for our on time, diligent payments.

    Thanks so much for your time.

    1. Hi Pat:

      The waiting period should be the same, but I’m going to recommend you talk to a mortgage banker to get more information about your qualification options. You can do this by filling out this form or calling 888-728-4702.

      Thanks,
      Kevin Graham

  20. I filed bk in July of 2014, discharged in September of 2014. I reaffirmed my first mortgage but not the second mortgage. I have paid both mortgages on time every month though because I have no intention of moving at this point. The interest rate on my second mortgage is 2.25%. In December of 2015 the Fed raised interest rates a quarter point. The second mortgage being a Heloc loan, I assumed my interest rate would raise to 2.5 but it didn’t, I am still at 2.25. My question is, was the interest rate of the second mortgage frozen or something since I filed bankruptcy? Why didn’t my rate go up?
    I am almost to the 2 year point since the discharge where i can refinance and take advantage of the low interest rates out there right now, but if my Heloc is frozen at its current rate of 2.25 because of the bankruptcy, and i dont have to worry about the fed raising rates again and again, I will just keep it there and float till the loan comes due.
    Any ideas?
    Thanks in advance.

    1. Hi Ron:

      I’m not sure what’s going on here because I don’t know how bankruptcy would affect the interest rate on a HELOC. It’s possible that even if it’s adjustable, you’re in the phase where it stays fixed for a certain amount of time. The best thing for you to do would be to talk to one of our mortgage bankers and see if they can help you look into your situation. You can do that by filling out this form or calling 888-728-4702.

      Thanks,
      Kevin Graham

  21. I’d like to know which bankruptcy option is best for me. I want to keep my vehicle and home since I don’t have a problem making the payments. Can you advise?

    1. We’ll need to take a hard look at your financial situation, Ajsha. Please use this link to talk to a home loan expert. Feel free to call or chat – whatever you’re most comfortable with. With a few more details, we’ll be able to point you in the right direction.

  22. Hi. I just had a Chapter 7 bankruptcy discharged in May. It was all medical bills. I did not own any credit cards or file on any of my vehicles, those were paid in full. I am looking for my first home loan and didn’t know what time length I’m looking at before I can apply?

    1. Hi Amanda:

      The absolute earliest you can apply post bankruptcy is a year. You have more options when you start being able to qualify for an FHA loan at two years.

      Thanks,
      Kevin Graham

        1. Hi Annette:

          I’m sorry for the lack of clarity. When I say post bankruptcy, I mean the time frame since the bankruptcy was dismissed or discharged it. In other words, the soonest you can try for a loan is one year after discharge or dismissal of a chapter 7 bankruptcy, for example.

          Thanks,
          Kevin Graham

  23. Hi, my Chapter 13 was discharged in June of 2015, i have a good down payment, I have never purchased a home before but would like to, i have had excellent credit since my 13 ended in march of 2015. is it possible for me to get a home loan? i really want to buy, rent up here in anchorage is nuts. Thanks

    Marty

    1. Hi Marty:

      You have some options. I’m going to have someone reach out. Have a good night!

      Thanks,
      Kevin Graham

  24. Mr. Graham is there an email i can reach out to you at to talk over a possible bankruptcy filing due to medical bills?

    1. Hi Morgan:

      If this is pertaining to the actual bankruptcy itself, you’re much better off speaking to a licensed bankruptcy attorney. That would be my advice.

      Thanks,
      Kevin Graham

  25. Hi, In 2009 my husband and I filed chapter 13 bankruptcy and we included our 2nd mortgage (home equity) loan on our current home. Our bankruptcy was discharged in April of 2013. Not sure how this will affect us purchasing a new home, since the 2nd was done as a short sale/foreclosure and we still have the 1st mortgage. Can you please advise what this means and how we can get to purchasing a new home? Thanks

    1. Hi Jill:

      Since your bankruptcy was discharged in April 2013, you probably have some options. I’m not sure how this second mortgage affects this, but I’m going to have a Home Loan Expert reach out and go over whatever options you may have.

      Thanks,
      Kevin Graham

  26. Hi if I filed bankruptcy in September 2012 included my mortgage in the bankruptcy how long do I have to wait to get a mortgage and do I have to wait for the time the home was sold

    1. Hi Linda:

      Waiting doesn’t start from the time you filed. It all depends on when you were discharged. I’m going to have someone reach out to you regarding possible options.

      Thanks,
      Kevin Graham

    1. Hi Grace:

      I’m going to have one of our One Reverse Mortgage team members reach out to you about this. They’ll be in contact.

      Thanks,
      Kevin Graham

  27. Once you are in Chapter 13 and are at 62 years old, can you do a Reverse Mortgage? What do you have to watch out for when dealing with the current lender/service provider? I understand they will erroneously report monies due to collect more from you in the Reverse Mortgage. I have an attorney handling all my Chapter 13 work.

    1. Hi Harrison:

      I’m going to refer you to our friends at One Reverse Mortgage. They’ll be able to look into any options you have and help with your questions.

      Thanks,
      Kevin Graham

  28. Does it make any difference in terms of waiting period to get a new mortgage if you DIDN’T get your current mortgage discharged in the bankruptcy, if you re-affirmed the debt and have remained current on payments? (e.g. if I sell my current house but it’s been less than 2 years since my bankruptcy discharge, would I be able to get a loan on a different house?)

    1. Hi Andrea:

      You have a fairly unique situation. I’m going to forward you to a Home Loan Expert and they can look into your scenario and give you an accurate timeline of when you might be able to apply for a new loan.

      Thanks,
      Kevin Graham

  29. Can quicken send a reaffirmation agreement to a customer who isn’t being represented by an attorney?

    1. Hi Claudia:

      I’m not familiar with our bankruptcy policies, but I’m going to get this to someone who can hopefully answer your question.

      Thanks,
      Kevin Graham

  30. I am elderly and on fixed income. I have always made mortgage payments on time for over 15 years, but need to refinance because interest rate is really high. I need to file BR to discharge debts for past medical bills, credit cards and 2 collection judgments which are liens against my real property in MO. After the balance owed to mortgagor and then the judgments which total more than the $15 homestead exemption, there is likely no equity in the real estate. So will I even be able to keep my home in Ch 7 BR, or will I have to file Ch 13?

    Will I for sure be able to keep my home since I can afford the payments? Also, is it possible to lower the interest rate through the bankruptcy process? Or will I have to wait until a couple years after discharge to refinance?

    1. Hey John:

      there are a couple of different issues going on here and I’m going to forward this to one of our Home Loan Experts to see if they can offer you any advice. Someone will be reaching out.

      Thanks,
      Kevin Graham

  31. Filed chapter 7 bk, surrendered home. Home has since been auctioned off/sold and deed out of my name at the same time the bk was discharged. Credit report only shows that the loan was included in bk but no record of foreclosure appears anywhere on credit report only bk appears. Will I be able to get a fha loan after the 2 year waiting peroid or will it be 3 years due to the inclusion of home in bk?

    1. Hi Nicole:

      I’m not really sure of the answer to that question, but I’m going to get this to a Home Loan Expert who will be able to give you the right information. Thanks for reaching out!

      Kevin Graham

    1. Hi Cristina:

      I don’t know the answer to that question, but I’m going to get it to a Home Loan Expert who will.

      Thanks,
      Kevin Graham

    1. Hey Danielle:

      Unfortunately, you cannot get a mortgage while in bankruptcy. There’s a certain waiting period after the bankruptcy is discharged. The length of time you have to wait depends upon what type of loan you’re trying to get. I’m going to connect you with someone that can give you more information.

      Thanks,
      Kevin Graham

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