Married? You don’t have to file bankruptcy together. If you are trying to protect your home by filing chapter 7 bankruptcy, and you are both on the mortgage, you may want to file separately from your spouse. There is an automatic stay – all creditor action against you paused – which lasts for a set number of days (90), or which can be relieved by a judge. Those 90 days can be extended if your spouse files after you stay is almost up. This is not legal advice, talk to your attorney, but keep in mind, there may be options that most don’t think about.
In a chapter 13 bankruptcy, if you were wondering, the stay can last for three to five years, and an attorney can help you navigate the decision process on which bankruptcy is right for your situation.
If you are negotiating with your mortgage lender, you may want to wait to file bankruptcy. Once you file, the promissory note on your home loan is voided. Remember, a bankruptcy does not mean you get to keep the home. A mortgage is a collateralized debt and there are multiple factors when considering negotiation bankruptcy. The threat of bankruptcy may encourage the lender to workout a resolution with you. if not, ConsumerLawAssist.com can help you locate an experienced bankruptcy near you who can help you determine the best path for you.