what does my bankruptcy lawyer need when they want my deed and current mortgage

What happens in bankruptcy if I am on the deed to someone else's home?

7031 Koll Center Pkwy, Pleasanton, CA 94566. master:2022-01-25_10-31-26. Yes, you can file for bankruptcy if you own a home. You can even file if you co-own a house or hold the home in trust for someone else. But in each scenario, you'll run a higher risk of losing the property in bankruptcy if you don't live in the house.

Can I file bankruptcy and keep my house?

Mar 19, 2011 · Answered on Mar 21st, 2011 at 2:57 PM. Your obligation to pay on any debt will be discharged through bankruptcy (unless it is a non-dischargeable debt). If you are no longer interested in keeping the home, they will sell the property in bankruptcy to satisfy the mortgage (to the best of their ability) and you will no longer have to pay.

What happens to my mortgage when I file bankruptcy?

The person declaring bankruptcy would need to include the property in the list off their assets on the appropriate bankruptcy paperwork. This is true whether the person is considering filing Chapter 7 or Chapter 13 bankruptcy. Quitclaim Transfer Just Before Bankruptcy

Do I have to disclose my real property interests in bankruptcy?

Do Not Sell My Personal Information. 7031 Koll Center Pkwy, Pleasanton, CA 94566. master:2022-03-14_10-28-20. No one wants to lose their house —and you might not have to if you file for bankruptcy. And even if you lose your home, you won't have to wait as long to qualify for a new mortgage after bankruptcy. Understanding how Chapters 7 and 13 ...

Can I keep my mortgage if I file bankruptcy?

As long as you make your monthly payments, the home is yours to keep. If you don't pay your mortgage, the bank can take the house back by way of a foreclosure. That's true even after you get a bankruptcy discharge. Because of this, keeping your home means keeping your mortgage.Jan 27, 2022

Will bankruptcy remove my name from a mortgage?

Filing for Chapter 7 bankruptcy will be the most streamlined way to remove your liability from a loan. Qualifying debt gets wiped out in four to six months, and you won't need to pay your creditors through a repayment plan.

What happens to my mortgage in a Chapter 13?

For the most part, you don't give up any property in Chapter 13 bankruptcy. This means that if you are current on your mortgage, you keep your home. If you are behind on your mortgage or facing foreclosure, Chapter 13 (unlike Chapter 7) allows you to make up mortgage arrears through your Chapter 13 plan.

Do I have to reaffirm my mortgage in Chapter 7?

The reaffirmation of mortgage debts is possible in Chapter 7 bankruptcy but it's not necessary. Learn what a reaffirmation agreement is how it affects your home mortgage.Apr 15, 2021

What does it mean to be on the deed but not the mortgage?

If your name is on the deed but not the mortgage, it means that you are an owner of the home, but are not liable for the mortgage loan and the resulting payments. If you default on the payments, however, the lender can still foreclose on the home, despite that only one spouse is listed on the mortgage.Apr 20, 2021

How do you get someone's name off a mortgage without refinancing?

You can remove a name from your mortgage without refinancing by informing your lender that you are taking over the mortgage, and you want a loan assumption. Under a loan assumption, you take full responsibility for the mortgage and remove the other person from the note.Jul 23, 2020

Is mortgage discharged in Chapter 13?

Mortgage Payments After a Chapter 13 Plan The lien allows the lender to foreclose on your home if you miss a payment. Simply completing your Chapter 13 repayment plan and getting a discharge won't get rid of the first mortgage lender's lien on your home.

What happens to my home after Chapter 13 discharge?

What Happens With My Existing Mortgage? With a chapter 13 bankruptcy, borrowers will not lose their property. You will include details on how you plan on paying your mortgage in your repayment plan. In most cases, an automatic stay is issued once Chapter 13 is filed.Aug 12, 2021

How long do you have to wait to refinance a house after bankruptcies?

Conventional mortgages: In most cases, you must wait four years from your bankruptcy discharge date before you can apply for conventional mortgage refinancing if you filed for Chapter 7 bankruptcy protection. Under extenuating circumstances, however, that waiting period may decrease to two years.Jan 31, 2020

What happens if my mortgage is not reaffirmed?

Reaffirming the debt gives it new life -- you're once again legally obligated to pay it. If you don't make the mortgage payments, the lender can foreclose and your bankruptcy won't stop this from happening. You'd also still be liable for any deficiency balance after the property's sale.

What does it mean if a mortgage is not reaffirmed?

When debt is discharged in bankruptcy, the bankruptcy petitioner is no longer personally responsible for that debt. Therefore, if a homeowner files bankruptcy, does not reaffirm the debt, and receives the discharge, he or she is no longer liable for the outstanding balance and the mortgage.Jan 7, 2020

What happens when a mortgage is reaffirmed?

Reaffirming your mortgage means that you file paperwork that states that you affirm this debt regardless of your bankruptcy discharge. That protects your lender from losing out on the money they have invested in the property, and it also allows you to retain your ownership in the home and your accumulated equity.Mar 12, 2019

What Happens to Your Property in Bankruptcy?

How your property is treated in bankruptcy depends on the type of case you file. (Learn more about what happens to your property in bankruptcy.)Cha...

You Must Disclose Your Interest on Your Bankruptcy Paperwork

If you file for bankruptcy, you must disclose all of your real property interests on Schedule A of your paperwork. This means that if you are on th...

Does The Home Have Equity?

If the home that you are on title to doesn’t have any equity (meaning that the balance of the mortgages and other liens on the property exceeds its...

Can You Exempt The Equity in The Home?

Exemptions protect your property in bankruptcy. In a Chapter 7, they allow you to keep a certain amount of assets by shielding them from the truste...

What Will Happen to The Home If You File For Bankruptcy?

If the home has nonexempt equity, the trustee will usually argue that it’s property of your bankruptcy estate and can be administered for the benef...

Talk to A Bankruptcy Attorney

How your legal ownership interest in someone else’s property will be treated in bankruptcy can be extremely complicated. Whether you lose the home...

What happens if you file for bankruptcy?

This means that if you are on the deed to someone else's home and file for bankruptcy, what will happen to the home will depend on many factors including: 1 whether the home has any nonexempt equity 2 the type of bankruptcy you file 3 the circumstances surrounding your property interest 4 the language in the deed 5 your state's property laws, and 6 the rules in your jurisdiction.

Why is Chapter 7 bankruptcy called liquidation?

Chapter 7 bankruptcy. Chapter 7 is called a liquidation bankruptcy because the trustee is able to sell your nonexempt property to pay back your debts. This means that if you can't exempt all of your property, it may be at risk in Chapter 7 bankruptcy. (Learn about how exemptions protect your property .)

Do you have to disclose your real property when filing for bankruptcy?

If you file for bankruptcy, you must disclose all of your real property interests on Schedule A of your paperwork. This means that if you are on the deed to someone else's home, you must disclose it on your bankruptcy papers (even if you think that you have no ownership interest despite being on title).

Can you claim a home in bankruptcy if you never paid?

If you have never made any payments on or improvements to the home or received any benefits from it, you may be able to argue that you hold only bare legal title and no real ownership interest that can be administered in bankruptcy. But even so, many courts have still ruled that the home is part of your bankruptcy estate.

Can you sell your home in bankruptcy?

If you do have an equitable interest in the property, then the home becomes part of your bankruptcy estate. Depending on the amount of your equity, the bankruptcy trustee may be able to sell the home to repay your creditors in a Chapter 7 case. If you file for Chapter 13 bankruptcy, you may be required to pay a significant dividend ...

What happens if you don't keep your home?

If you are no longer interested in keeping the home, they will sell the property in bankruptcy to satisfy the mortgage (to the best of their ability) and you will no longer have to pay. It will show up on your credit report as discharged in bankruptcy.

Does bankruptcy remove your name from your deed?

No, filing bankruptcy does not automatically remove your name from the deed to your home. Your question does not give any indication of why you want to remove your name from the deed to your home.

What is a quitclaim deed?

Binding Nature of a Quitclaim Deed. A quitclaim deed is a binding legal document, the same as a warranty deed or other legal documents that may be used to transfer real property from owner by one person to another. This is true even though any individual can execute a quitclaim deed, as opposed to having the deed executed ...

Can you hide a bankruptcy deed?

It is generally unwise to attempt to hide the transfer of property from the bankruptcy court even if that transfer was performed using a quitclaim deed. As noted above, if a quitclaim transfer of property was executed properly and filed with the county, it is considered a binding legal transfer and is available for viewing in the public record. A bankruptcy court can potentially identify through the public record any property that you have that you have failed to list in your bankruptcy. Such an attempt to hide assets and deceive the bankruptcy court can result in your entire bankruptcy being thrown out.

Can you transfer property to someone else before filing for bankruptcy?

If you need to declare bankruptcy and you transfer property you previously received through the filing of a quitclaim deed back to the original property holder (or to anyone else for that matter), the bankruptcy court will by default assume you are trying to hide the asset and commit fraud. It is a common practice for people declaring bankruptcy to transfer their assets to someone else just before declaring bankruptcy in an attempt to keep that property from being used to satisfy money owed to creditors.

Can you transfer property from one person to another?

A quitclaim deed, which is often mistakenly referred to as a “quickclaim deed,” allows someone to transfer his rights to real property , such as real estate, to another person.

How does bankruptcy work?

Here's how it works. If you don't have enough equity in your home to secure the second or more junior mortgages, then the bankruptcy court can "strip" the liens securing the mortgages and reclassify the debt as unsecured. This debt then gets paid off through your repayment plan.

What happens if you file Chapter 7 bankruptcy?

In Chapter 7 bankruptcy, most or all of your debts are discharged. In exchange, the trustee is entitled to sell your nonexempt property and use the proceeds to pay your unsecured creditor. That means that if your home has a significant amount of nonexempt equity, the trustee will sell it. To learn if your home has nonexempt equity, see Chapter 7 Homestead Exemption.

Does bankruptcy affect mortgage payments?

Chapter 13 bankruptcy does not affect your home mortgage. You continue to make your mortgage payments during and after the bankruptcy. If you are behind in mortgage payments, you can pay off the arrears through your Chapter 13 repayment plan (which lasts three to five years). As long as you make your current mortgage payments ...

Can you modify a mortgage in bankruptcy?

In some instances, you can modify a mortgage in Chapter 13 bankruptcy so that the new principal equals the actual value of your home. For example, if your mortgage is $500,000 but the property value has declined to $300,000, you could modify the mortgage amount to $300,000.

Can an attorney text you?

Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

Can you keep your home if you file for bankruptcy?

If you file (and qualify) for Chapter 7 bankruptcy and your home is exempt, you can continue to make your mortgage payments if you want to keep your home. Although the bankruptcy will discharge your personal liability for the home loan at the end of the case, the lender's security interest in the property remains in force. So, if you don't make your payments, the lender can foreclose.

What happens if you declare bankruptcy?

If you declare bankruptcy, there are established procedures of due process. You don’t automatically lose your house. Nor is your loan accelerated to automatically become due if you’ve been current up to this point on your payments.

How long does it take to get a conventional loan after bankruptcy?

If you're looking to apply for a conventional loan, it matters whether your bankruptcy was discharged or dismissed. In the event of a Chapter 13 discharge, the discharge date has to be more than 2 years prior to the date credit is pulled and more than 4 years since the filing.

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is also known as total bankruptcy. It’s a wipeout of much (or all) of your outstanding debt. Also, it might force you to sell, or liquidate, some of your property in order to pay back some of the debt. Chapter 7 is also called “straight” or “liquidation” bankruptcy. Basically, this is the one that straight-up forgives your ...

Can self employed file for bankruptcy?

One quick note before we move forward: This resource is going to cover Chapters 7 and 13 bankruptcy filings because these are the ones most commonly utilized by bankruptcy filers, but self-employed people may be able to file Chapter 11 bankruptcy. Chapter 12 bankruptcy is available to fishermen and farmers.

Can you keep nonexempt property in Chapter 7?

In some cases, people are allowed to keep nonexempt properties. It all depends on the bankruptcy trustee and how they choose to handle the property. To understand how Chapter 7 impacts your existing home mortgage, you must first understand the difference between a loan and a lien.

Can you keep your house in bankruptcy?

Since your house has to be considered exempt from the bankruptcy in order to have the most favorable scenario for keeping your house, it’s important to know how exemptions are determined. How your home is handled in a bankruptcy is determined by state or federal homestead exemptions.

Can bankruptcy affect mortgage?

If one person files for bankruptcy, that can have an impact if you both are on the mortgage. There are instances where one person’s bankruptcy can cause issues with keeping the home, even if more than one of you is on the mortgage. In order to be fully apprised of what can happen, talk to your attorney.