Posted: 11/18/2007 2:38:45 PM EDT
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A friend of mine told me the other day that he will probably wind up having to declare bankrupcy. He told me that he plans on only doing a "partial bankrupcy" to take care of his credit card debt, but plans on keeping his house. I don't know anything about bankrupcy so I didn't question him, but I didn't think that was possible. He is "up side down" on his house with two mortgages. I felt really bad when he told me... I've kind of seen it coming for years because they were living beyond their means and racking up more and more debt. Does anyone think that there is any truth to what he said about keeping the house even through a bankrupcy? TIA |
| Yes there is a way to keep your house under certain bankruptcy rules. Depending on all his situations he may be able to "reaffirm the mortgage". Best bet would be to obtain an attorney that deals in bankrupcy. My friend was able to write off $140,000 in charge card debts and loans, keep one car and reaffirm his mortgage under Chapter 7 bankruptcy. I know bankruptcy does not relieve you from your mortgage payment and allow you to keep the house for free. |
