What if there is a catastrophy - earthquake

[dmc-2008]

After filing a Chapter 7{


1) If there was a major earthquake that destroyed my condo, I would be liable for the mortgages and the HOA even if I couldn't live here and there is nothing I could do to get out of that liability?


2) Would I be liable for the HOA dues or just the mortgages


2) If something like that happened, I would have to pay those debts, Mortgages, HOA and any special assessments the HOA imposed for repairs if any? Even if I couldn't live here because of damage?


3) I would have to wait 8 years and then could I get out of the mortgage obligations?


So worse case would be that I would have to pay the mortgages and HOA for 8 years?


But in a Chapter 13 you could convert to a 7 and not be liable at all right?

[AngelinaCatHub]

Am I missing something here? Why are you pre worrying? Even if your place is destroyed for some unlikely reason, that is what insurance is about. If you C7 and NOT reaffirm the debt, you could legally walk away without debt. Here in Florida we have hurricanes. I've lived through many of them. But I don't worry about them. There is enough to worry about.

[HHM]

Someone needs to get back on their meds (or someone is in such denial they are looking for any reason, no matter how outlandishly unreasonable not to file BK).

First, let's do some education about what happens to a mortgage in chapter 7: your personal liability IS discharged. Now, the lien stays in place; so, if you were to stop paying the mortgage after filing chapter 7, the bank can foreclose. But in the extremely unlikely event of a total loss, you would be protected by the chapter 7 BK against the mortgage coming after you (assuming you DID NOT reaffirm).

As for the HOA, we can only speculate as to what would happen. Presumably, if "your" house was destroyed in an earthquake, presumably others in the association would be destroyed as well. The HOA would probably become defunct at that point.

[dmc-2008]

Oh my gosh, Yes, give me meds!!!

But what if the mortgage was not part of the Chapter 7? I mean, I just included unsecured debt and not the mortgages. I know, I think WAYYYYYYYY too much! I am going to have to get me some Xanax I am afraid.

cOO COOOOO!

[HHM]

Oh my gosh, Yes, give me meds!!!

But what if the mortgage was not part of the Chapter 7? I mean, I just included unsecured debt and not the mortgages. I know, I think WAYYYYYYYY too much! I am going to have to get me some Xanax I am afraid.

cOO COOOOO!

Someone else want to field that one, too much to explain

Did you file with, or without an attorney.

[justbroke]

That's the right question, HHM, did you file with an attorney.

[LadyInTheRed]

But what if the mortgage was not part of the Chapter 7? I mean, I just included unsecured debt and not the mortgages.

All of your debt is included in a Chap 7 unless you reafirm a debt. There is rarely a good reason to reafirm your mortgage.

In California, if your mortgage is a purchase money loan, the bank can't go after you personally anyway. If the condo is destroyed, you can walk away and leave the bank with the property and any insurance proceeds.

[dmc-2008]

I haven't filed yet. I have been flip flopping so much between which chapter to file it is not even funny. I have been a complete MORON.

But I have made a decision and will post as soon as its a done deal, or at least filed.

My attorneys office have the patience of saints!

[LadyInTheRed]

My attorneys office have the patience of saints!

LOL. I had to go back to your other thread and make sure you were who I thought you were. I missed your last post there. Glad to hear you and your attorney worked things out.

[dmc-2008]

;-) Yep, it's me - the crazy gal.

[AngelinaCatHub]

;-) Yep, it's me - the crazy gal.

Hey Crazy Gal: Go for it. Your procrastination is killing you. I NEVER thought I would go to C7 after being a millionaire on paper and funds. Stuff happens. I'm still the same person I was, except much more wise. We be broke now! BUT, much happier with all new values. I care less what everyone I know, or who knows me, thinks. That is their problem not mine.

Ever hear of the Red Hat Society? I'm not a lady but I feel the same way. Google it. A very healthy message. 'Hub