Q: I own a house I'm still making monthly mortgage payments on. How will it be affected (if at all) if I file for
bankruptcy?
A:
Chapter 7 bankruptcy doesn't get rid of the mortgage company’s lien on the house. Your discharge only wipes out your personal liability on the mortgage note. If you don’t make your payments, the lender can no longer come after you personally, but it retains the right to take the house back through foreclosure. You still have to continue making mortgage payments if you want to keep your house.
Chapter 13, unlike Chapter 7, allows you to make up mortgage arrears and provides other tools to reduce your home mortgage debt.
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