I need clarification in regards to my house situation.....

[mesa777]

I am in the first step of probably filing a chapter 7 bk, live in AZ, have a 1st and 2nd mgt. and am upside down probably by at least $40K... IF I decide to file ch 7 and once I am discharged would I be screwed if I just at that time decide to walk away from my house and the huge house payment and just get a cheaper place to live, apartment?

I do not want to get involved in a ch 13 if I can help it as it seems like a prison sentence and really pisses me off when I think that bank and mortgage companies are getting "bail outs" by the government and us tax payers!!!

Can someone here please shed some light on this question... I can qualify for a ch 7 with my house however was told if the house was not included that I would have to file for a ch 13... Well after I file and am no longer able to pay what can they do to me??? HELP!!!!

[BK2008]

Are you including it in your BK7??? Are you going to surrender the house??

If you are that upside down, and the payments are killing you, that may be the best way to go, so that the balance remaining on the mortgages will be wiped out in the BK.

If you keep the house in a BK7, and later fall behind on it, you will then have a foreclosure on your hands as well as a BK.

I don't know enough about 13's to advise you, but I imagine when they reorganize your payments to your creditors, the house will be included with your payment to the trustee.
If you end up not being able to make the payment to the trustee...I'm not sure. Someone will be able to advise you on that aspect.

[keepmine]

If you don't sign a reaffirmation agreement, you have no liability for any deficency balance.
You need to talk with your lawyer about how your district handles this. In some districts, you won't be able to count your mortgage as an expense unless you reaffirm.

[JRScott]

I'm assuming they are telling you you can't use the house payments unless you keep it. What I'd do is file the paperwork with the intention to reaffirm. They'll mail something to your lawyer, he'll have you look over it. Don't sign it.

Wait til after discharge and then walk away, you'll owe nothing (so long as you don't sign that reaffirmation agreement). Talk to your lawyer and see what he thinks, its a bit sneaky but as far as I know legal. (however I"m not a lawyer )