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2nd mortgage in chapter 7

Oceanside, CA |

Foreclosure 3 1/2 years ago and 2nd mortgage never contacted me. I still have them in my credit history as I owe them. I am trying to file chapter 7. should I put it in even they don't come after me?

Attorney Answers 4


I agree that you list the second mortgage in your chapter 7 bankruptcy. They could still be looking to collect from you but if the debt is listed it will be discharged and they cannot come after you.

What you don't know now is whether the second mortgage holder was a "sold out junior" lien holder. If they were and the took nothing in the foreclosure then they could come after you for payment of the second. If they were paid something in the foreclosure then you are probably safe unless you signed some document where you agreed to pay. (I have seen this with some of my clients).

The safe and smart thing to do is list it so you will have no uncertainty here. It can't hurt you and can only help you. Please also get a bankruptcy attorney to help you with the bankruptcy because bankruptcy is a difficult thing to do by yourself.
(619) 702-5015.

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Yes, you should include this debt even if the creditor hasn't pursued collection because the creditor still has a legal right to do so. Even if the creditor didn't have the legal right to pursue you, there is no harm in listing one more creditor in your bankruptcy petition.

Hope this perspective helps!

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I agree with Attorney Bunce. In order to get the debt discharged, you should list the debt owed on the 2nd mortgage if you are filing for Chapter 7 bankruptcy.

Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.

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Always list all anyone you think you may owe.

There is no reason to not list a potential creditor.

It is a mistake not list creditors and can hand negative repercussions.

Good luck.

Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a framework to know how your situation may turn out. I may have questions that bring up issues you did not think were important but make a big difference.

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