This is a question that was asked on AVVO.com:
Can missed mortgage payments be put into a chapter 7 as a way to catch up with the mortgage? I am
underwater due to medical bills and was unable to pay 6 months of mortgage payments.
My answer:
The answer generally is no. A mortgage is a debt which is “secured” by your house. If you miss payments, the mortgage company can foreclose, and the bankruptcy does not change those rights. However, there are many options you have to catch up, such as Chapter 13 (a payment plan) , or possibly loan modification. Chapter 7 bankruptcy does not provide a way to catch up and prevent foreclosure.
It is best that you contact an experienced bankruptcy attorney to discuss which option is best for you. I offer a free in-depth consultation to review your whole situation.
I would add that this is very important to know. It is very important to know exactly what will happen if you file a bankruptcy case. If a client comes into my office, he or she will know at the end what the options are and what the potential results will be. Only then can you, the client, make the right decision. We can help you decide what is best with care and compassion for you as a person.
Daniel J. Winter
BankruptcyLawChicago.com
312-789-9999
Offices in Chicago, Oak Lawn, Gurnee, and Skokie, Illinois
