Ask a Lawyer - Archive
   
Foreclosure After a Bankruptcy Discharge
Cathleen Cooper Moran

Q. 

I filed Chapter 7, listed the loans on my home, along with other debts. I got a discharge in October, 2008. In June, I got a foreclosure notice on my home. Am I responsible for the home?

-- Ch 7 Weird

A. 

The bankruptcy discharge relieves you of any personal liability on the debts associated with the house. The bankruptcy does not invalidate the liens on the property. So after a bankruptcy, the lender still has a lien but cannot look to the borrower for any deficiency.The only way for a mortgage creditor to get title to the house which was pledged as collateral for your loan is to foreclose. The foreclosure should not impose any cost or new debt on you.



-- Cathleen Cooper Moran

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