' Mortgage After Bankruptcy Discharge - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What Happens to Your Mortgage after a Bankruptcy Discharge?

One of the primary reasons people are reluctant to file for bankruptcy is because they are worried about what will happen to their home.

The truth is bankruptcy can help you continue living in your home. But what happens to your mortgage if you are behind on your payments or unable to continue making your payments?

Secured Debt vs. Unsecured Debt

First, it’s important to understand the difference between a secured debt and an unsecured debt.

An unsecured debt is a debt that has nothing attached to it. For instance, credit card debt is considered unsecured. On the other hand, a secured debt has something that can be taken, such as a vehicle or a home. If you don’t pay your mortgage the bank can take ownership of your home through foreclosure.

When you apply for bankruptcy, some or all of your debts could be discharged. It’s even possible to discharge secured debt, but most people prefer not to do so.

If you choose not to discharge your secured debt, you’ll be required to make payments on these debts, but you won’t need to sacrifice the property to the bankruptcy court. In order to keep an asset, you’ll enter into a reaffirmation agreement, protect the debt from bankruptcy, and make it non-dischargeable. This is how many homeowners are able to stay in their homes, even though they’ve filed for bankruptcy.

To learn more about how discharge works in bankruptcy, visit the United States Bankruptcy Court website.

How Bankruptcy Affects Your Mortgage

So what happens to your mortgage after you’ve filed for bankruptcy?

It depends. If you want to continue living in your home, you might have the option of doing so. If you want your mortgage discharged, you have the option of doing that too, but you’ll lose possession of your home.

In most cases, the decision is up to you, but your bankruptcy attorney will review your financial situation with you and help you determine the best way to proceed.

For some, giving up their home and “starting from scratch” is the best option. In other cases, remaining in your home is an essential part of your bankruptcy success. Everyone’s personal situation is different and often, having a roof over one’s head is an essential part of their fresh start after bankruptcy.

If you’d like to discuss your situation with an experienced bankruptcy expert, or you’re ready to begin filing, we can help. To schedule a free consultation, contact the Law Offices of Robert M. Geller at 813.254.5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can Bankruptcy Stop Foreclosure?

Many people face the distressing prospect of foreclosure on their homes. If you find yourself in this situation, it's crucial...
Read More

How Much Does It Cost to File Bankruptcy in Florida?

Financial challenges can be overwhelming. For many individuals, bankruptcy becomes a viable option for a fresh start. Many clients are...
Read More

How to Get Out of Debt: Exploring Your Options

Debt is a pervasive issue that affects millions of people worldwide. It is hard to escape debt, especially if you...
Read More

How Will Bankruptcy Affect My Child Support Obligations?

Parenting can be tough, and it's even harder when you're facing financial difficulties. Struggling with debt and bankruptcy can cause...
Read More

Student Loans: Is Discharge in Bankruptcy Possible?

Student loans have become a necessary evil for most students to pursue higher education. The cost of education has increased...
Read More

Should I File Bankruptcy for Credit Card Debt?

Credit card debt can be a huge burden on our financial lives. The pressure to make payments, maintain balances, and...
Read More

Can Bankruptcy Stop Wage Garnishment?

Wage garnishment is a legal process in which a creditor can collect a debt by receiving a court order that...
Read More

Bankruptcy Guide: How It Works, Types, and Consequences

Dealing with money problems can be a stressful and overwhelming experience. Sometimes, debt can become unmanageable, and it may feel...
Read More

What to Say to Someone Going through Financial Problems

Financial problems can be one of the most stressful experiences a person can go through. If you know someone who...
Read More

How Do People Get Into Debt?

How do people get into debt? Are you struggling with debt? Do you feel like the weight of your financial...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions