Q: I had a bankruptcy discharge Nov 2013 chapter 7. There was a secured loan a second on my home from a credit union .
Can the credit union foreclose on my home
A: The result of filing bankruptcy and receiving a discharge is that your personal liability for the debt is discharged. Note the word personal. In this case, your personal liability to the credit union has been discharged - the credit union cannot seek payment from you. However, the discharge does not eliminate existing liens on property which is a secured interest in the property. Thus, the credit union can, in fact, seek foreclosure of your residence either as a result of a deed of trust that you provided when you got the loan that allows them to foreclose, or through a judicial foreclosure by filing a lawsuit in court, requesting an order to foreclose. If you intend to keep the property, I urge you to communicate with the credit union about options to settle the loan or bring the payments current. Alternatively, try to obtain a new loan from another lender to settle or pay off the credit union. If you had filed your bankruptcy with a bankruptcy attorney, this information should have been provided to you.
Stuart Nachbar agrees with this answer
A: Yes they can but they can not enter a judgment against you personally for any deficiency.
A: Your lawyer should have stripped the secured second mortgage. Please call him and ask him that question.
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