Is it true that Chapter 7 bankruptcy will not erase the mortgage?

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With an income insufficient to pay the current mortgage and 2nd mortgage discharge and bank not willing to offer help, what are my options? Debt than the other is about $ 9000 on a car loan and $ 3,000 on a credit card. If bankruptcy mortgages are not then it seems silly to do the small amount of files on my other debts. We tried to sell our house now for 6 months with no luck. We pay for our health Cobra. That comes first, because my daughter two years and I both have serious health problems. What do I get rid of the house? What happens in the case of a foreclosure sale? I always thought that Chapter 7 bankruptcy, it is clean, wipe even mortgages. Can anyone offer advice? Thank you.

  1. Reply
    100% Organic Snark™
    February 21, 2011 at 5:05 pm

    If you mean you think you’ll be able to keep the house even after you file bankruptcy to get rid of the loan debt — no. It doesn’t work that way. If you file bankrupcty and don’t reaffirm your intent to pay off the mortgage, you don’t get to keep the house AND get rid of the mortgage.

  2. Reply
    February 21, 2011 at 5:57 pm

    Bankruptcy will not wipe out a mortgage.
    Bankruptcy destroys your credit for at least 5 years and a foreclosure with a bankruptcy is the Absolute worst and will haunt you forever.

    All you can do is try sell the house for the absolute minimum and hope it sells fast.

    The rules for bankruptcy have changed and it is very difficult to qualify for bankruptcy now and on top of that there are court and lawyer fees to be paid upfront.

  3. Reply
    February 22, 2011 at 4:02 pm

    Please do your homework and schedule a consultation with a lawyer. It is not as difficult as most people believe to qualify for bankruptcy.

    Talk to a licensed attorney about your options. Many offer free consultations.

    Good luck to you,


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