http://www.nationalbankruptcyforum.com/protecting-your-property/what-is-the-rule-with-homes-and-bankruptcy/ Bankruptcy Attorney Blogs and Directory Tue, 07 Feb 2012 19:52:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.nationalbankruptcyforum.com/protecting-your-property/what-is-the-rule-with-homes-and-bankruptcy/comment-page-1/#comment-2348 Moderator Wed, 03 Feb 2010 13:32:24 +0000 http://www.nationalbankruptcyforum.com/?p=1246#comment-2348 Thanks for the comment. For all of you playing along at home, the advantage of having personal liability on the mortgage removed by filing bankruptcy is that after foreclosure your lender cannot come after you for a deficiency judgment. The bankruptcy essentially converts a recourse loan into a non-recourse loan where the lender's only avenue of collection is the home. Thanks for the comment. For all of you playing along at home, the advantage of having personal liability on the mortgage removed by filing bankruptcy is that after foreclosure your lender cannot come after you for a deficiency judgment. The bankruptcy essentially converts a recourse loan into a non-recourse loan where the lender’s only avenue of collection is the home.

]]> http://www.nationalbankruptcyforum.com/protecting-your-property/what-is-the-rule-with-homes-and-bankruptcy/comment-page-1/#comment-2346 Richard West Wed, 03 Feb 2010 01:47:46 +0000 http://www.nationalbankruptcyforum.com/?p=1246#comment-2346 A bit more information for your readers. I am a board certified bankruptcy attorney in Ohio. In some jurisdictions, it is not uncommon to file a chapter 7, AND NOT REAFFIRM ON THE HOUSE, thus discharging the debtor's personal liability, but continue to make the house payments and continue to live in the house. The advantage to this, from the debtor's view, is that if the debtor later is unable to pay for the house, the creditor can repossess it through foreclosure, but the personal liability of the debtor is gone. A bit more information for your readers. I am a board certified bankruptcy attorney in Ohio. In some jurisdictions, it is not uncommon to file a chapter 7, AND NOT REAFFIRM ON THE HOUSE, thus discharging the debtor’s personal liability, but continue to make the house payments and continue to live in the house. The advantage to this, from the debtor’s view, is that if the debtor later is unable to pay for the house, the creditor can repossess it through foreclosure, but the personal liability of the debtor is gone.

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