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Going to file chapter 7 bankruptcy. Cannot pay back $900,000 business loan , now were being sued.

Clermont, FL |

We don't want to loose our home, it's underwater for $100,000, were not going to file a chapter13 cause we are unable to pay back the $900, under a ch.7 would the mort co. Be able to modify our home loan, we really want to stay there?

Attorney Answers 3


See my answer in your other question you posted.

Chapter 13 does not require you to pay back all of your debt. That is a misconception.

The only way to get a feel for how chapter 13 works is to speak to an attorney.

Chapter 7 will do nothing to help you modify your home mortgage. Bu the chapter 13 mediation program may be able to help.

Again, please see the answer on your other posted question.

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From your post it doesn't sound like you have spoken with an attorney. My suggestion is that you do so. If you file improperly, or if you fail to file in the correct chapter, you could end up in a worse position. Make sure you speak with a bankruptcy attorney as soon as possible and BEFORE you actually file your case.

This response does not create an attorney-client relationship. Unless you are already a client of the Sosa Law Office, P.A., pursuant to an executed employment agreement, you should not use, interpret, or rely on this response as legal advice or opinion. Do not act on any information in this response without seeking legal advice. Melissa Sosa, Esq. 813-681-5640.

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First, any bankruptcy attorney should go through all of your options under the bankruptcy code. Most likely a Chapter 7 or a Chapter 13 are the two options. A Chapter 7 liquidation does not modify or change the terms of any secured creditors status. I.E. by filing a Chapter 7 the mortgage company does not have to modify the terms of a mortgage and usually will not. However, in some cases they will contact you to keep you liable on the property. A Chapter 13 reorganization would repay creditors over time. However, pursuant to 11 USC 1322 you cannot modify the mortgage of your primary residence (i.e. you cannot change payments, interest or any other terms of the mortgage in a Chapter 13). Sometimes, the mortgage company will contact you after filing either type of bankruptcy to do a loan modification, but it certainly depends on the lender. Chapter 13 can be a percentage plan. Speak with a bankruptcy attorney in your area.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Illinois. Responses are answers to general legal questions and the receiver of such question should consult a local attorney for specific answers to questions.

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