Regarding a Chapter 7 BK, I had been under the impression that it would stop a foreclosure, but the home would have to be vacated and turned over to <whoever>. Is this correct, because I seem to have come across some conflicting information and just wanted to be sure.

I am trying to decide between a Chapter 7 and a Chapter 13, so any info would be helpful. Also, how long, from the date of file (or the court date, whichever) do I have to vacate the home after filing a Chapter 7? It would be the state of Oklahoma, if that matters.

Thanks for any help.

If you wish to reaffirm the debt (loan) on the home you obviously do not have to move out in a Chapter 7 proceeding. In a Chapter 13 proceeding you will be repaying all your debts on a payment schedule. You would not be discharging the debt but merely taking much longer to repay the debt.

You would want to file the Chapter 7 to keep your home. You would be also legally discharging any other debt you don't want to keep paying on such as credit card debt, medical debt.

Please consult with a good bankruptcy attorney to have your paperwork filing done correctly. Bankruptcies are not usually done correctly when you are "doing them yourself". I prepared bankruptcy filings in a Florida law office for 7 years and a lot of individuals would never have been able to do the voluminous paperwork correctly.

I appreciate your response, twink!

Wait... I'm still confused! I did consult two attorneys. One only dealt with chapter 7's and after I explained the situation, they said I would want a chapter 13 if I wanted to avoid foreclosure and stay in the home. They said with a chapter 7, the home would have to be vacated. In other words, file a chapter 13 and avoid the foreclosure but be able to stay... or file a chapter 7, and have to move.

I totally understand how a chapter 13 works, with the payment plan and all.

Are you absolutely certain that a chapter 7 will stop the foreclosure proceedings? I understand what you said about "reaffirming" the debt... it means, rather than have the unpaid amount discharged, I would agree to pay on it as normal. In that case, what happens exactly with the past due amount I currently have, which includes huge attorney fees? Would I have to repay it all at once or would I just resume making my regular monthly payment? Can I get the attorney fees discharged?

I had also read/heard that, with a chapter 7, it may or may not stop foreclosure action... and even if it does stop the action, the mortgage holder can file something that allows them to proceed anyway... I'm just hearing and reading all this conflicting and confusing information!!

Oh, and let me say... I am not necessarily determined to keep my home. That is not what will decide this matter. I really couldn't care less, stay or go. My main concern is avoiding the foreclosure so that's not on our credit and I don't have to deal with it.

Don't appreciate the reddie. And I'm not going to try and explain Chapter 7 to you either.

If you don't want to keep the house go for a Chapter 7 and then you won't have to pay off everything that you still owe and the attorney's fees.

There is not going to be any way to have this not show up on your credit report either.

You never did say what all your debt was i.e. medical, credit cards, etc. Or is your debt just the house and the attorney's fees that went with the foreclosure?

And if you do file bankruptcy proceedings, the mortgage holder can't just continue on and "file something" either as the bankruptcy filing stays any legal action the mortgage holder may have even if they do have a suit that has already been filed. It is only after the bankruptcy proceedings have gone their course and you have your creditor's meeting and your bankruptcy is discharged or not allowed is the mortgage holder allowed to "file anything".

What state are you in anyway?

The attorney who told you that you could not save your home in a chapter 7 is completely wrong, I would run from anyone without that knowledge.

You may even in a chapter 7 keep your car and your home if your payments are up to date and re-affirm the debt.

In a chapter 13 you can be behind in the house payment but there has to be payments made, along with payments on all of your other debts and you will be put on a very tight budget for 3 to 4 years.

So the real issue is what you want to do, and can you afford to do it

The issue with the homes is if you are behind in the payments or not, and the equity you have in the home

Twink said: You would want to file the Chapter 7 to keep your home.

This is false information, and it deserves a red.

In a chapter 7, although it does initiate an automatic "stay", the mortgage holder can-and will- file to lift the stay and proceed with the foreclosure, and they are 99% successful in this . So not only do you end up with a BK, you also get a foreclosure.

A chapter 13 is the only way to absolutely stop foreclosure proceedings and keep your home, of course providing that you adhere to the repayment plan and keep current on your mortgage payments.

The only way ,and this is EXTREMELY rare, and not feasible for most people in a dire financial situation, is to reaffirm the debt. Chapter 7 is not the right option for the vast majority of people in risk of foreclosure. It at the most just buys the homeowner a little more time until the inevitable foreclosure.

Twink said: "And if you do file bankruptcy proceedings, the mortgage holder can't just continue on and "file something" either as the bankruptcy filing stays any legal action the mortgage holder may have even if they do have a suit that has already been filed. It is only after the bankruptcy proceedings have gone their course and you have your creditor's meeting and your bankruptcy is discharged or not allowed is the mortage holder allowed to "file anything"."


Too bad I can't give you another reddie.

Immediately upon official filing of the Ch 7 BK, the mortgage holder has every right, and excercises that right, to lift the automatic stay and proceed with the foreclosure.