2nd Mortgage?

[MEA2]

In the past we racked up debt and then put it into a second mortgage.That payment caused us to go into cc debt again So how does a Chapter 7 work if we keep our house,will we still have the 2nd mortgage payment?
Thanks

[anonymuse]

Are you behind on any of your mortgage payments? If you are up to date and your equity in the house does not exceed the homestead exemption for your state (and the whole means test, etc), then Ch 7 is a possibility.

[wbasters]

"Are you behind on any of your mortgage payments? If you are up to date and your equity in the house does not exceed the homestead exemption for your state (and the whole means test, etc), then Ch 7 is a possibility."


I am in a similar situation and my bankruptcy was discharged as a "no assets". My home is valued at $300,000, 1st mortgage of $218,500 home equity line of $75,000. I am within the homestead exemption dollar amount ($10,000 in my state) do I need to continue paying the 2nd?

[anonymuse]

You have to continue paying any secured debt--which would include both mortgages. (Unless, of course, you give the house up.)

[wbasters]

You have to continue paying any secured debt--which would include both mortgages. (Unless, of course, you give the house up.)

but i just checked my credit report and the 2nd shows a balance of $0...why would it show that balance?

[BassBoy]

but i just checked my credit report and the 2nd shows a balance of $0...why would it show that balance?

You filed under the old law, right? Did you file Ch.7? If you did file Ch.7, then ALL debts have been discharded. Even though you may still be paying your 1st and 2nd liens, those payments are voluntary. Your creditors MUST STOP reporting to the Credit Bureau's.

[djk]

In the past we racked up debt and then put it into a second mortgage.That payment caused us to go into cc debt again So how does a Chapter 7 work if we keep our house,will we still have the 2nd mortgage payment?
Thanks

well, the 2nd did allow to clear the decks on a personal level. the thing is you seemingly did not learn from that experience. depending on age and income, as well as any projected increases in income and adjustments in ability to repay, it might be time to take a good look at tanking completely and being able walk from the house and the mortgages. just a thought (albiet a bad one)

[BassBoy]

In the past we racked up debt and then put it into a second mortgage.That payment caused us to go into cc debt again So how does a Chapter 7 work if we keep our house,will we still have the 2nd mortgage payment?
Thanks

The Ch.7 will wipe out everything, however, you're asking how it works if you keep your house.........under the new laws, you MUST STATE INTENTIONS (reaffirm or redeem). If you wish to keep it, then BOTH loans are (basically) kept out of the BK and you MUST continue to keep the payments current. Remember, if you file BK, you can not file BK agian for several years, so if you were to fall behind in, let's say, a year, then you ARE RESPONSIBLE for those loans. So, to answer your question, YES, you will still have the 2nd mortgage, along with the 1st.