Stillwell, GA Bankruptcy Law Firms & Lawyers

If you are unemployed contact your creditors to make an arrangement. If you can't pay them they have the right to sue you. Also, you may want to contact an attorney to discuss whether it makes sense to file bankruptcy.

As long as you didn't reaffirm the mortgage in the chapter 7, you can walk away from the house with no financial penalty. The mortgage company will not be able to come after you for a deficiency. It is worth noting that, even if you had reaffirmed the mortgage, it is highly unusual for a mortgage lender to pursue a deficiency against a debtor. Pursuing a deficiency requires either a suit on the note, which can slow down the foreclosure process, or a confirmation of sale, which is a mini-trial that occurs after foreclosure. This usually only occurs when the debtor owns more than one home and the lender is fairly certain the debtor has lots of assets. This is because both suits on note and the mini-trial with a confirmation can be very costly. Mortgage companies realize that "you can't squeeze blood from a rock," so they usually allow you to walk away from property without any real consequences, aside from reporting a foreclosure on your credit report. Since you filed chapter 7 and didn't reaffirm, the mortgage company will not even be allowed to make a negative report on your credit history. You can walk away free and clear.

This is unlikely but depending on the state you live in still possible. In Connecticut, a debtor can exempt seventy five thousand dollars of equity in their home. If the amount of equity in your home is less, than his portion of the house is safe.