Skip to main content

Can I file a Chapter 7, but keep my home and later file a Chapter 11 if I can't modify my home loan?

Las Vegas, NV |

I have a creditor coming after me on a $300k judgment, but I don't want to file BK right now, because I don't want to lose my home. I owe $1.8m on my home and I need to get $800k knocked in off through a modification or I don't want the house (it's worth about $1.1m). So my plan is to wipe out all my debt except my house now and then let the house go back to the bank if necessary and wipe out the deficiency if they come after me for the deficiency through Chapter 11. This is assuming I can't do another Chapter 7 and I won't be eligible for 13 because it will be around $800k.

+ Read More

Attorney answers 7

Best Answer

I have agreed with the other attorneys answers. However, I noticed one thing: we don't KNOW how much your actual monthly mortgage is or may be..and if too large, some US Trustees or Attorneys will object that your can afford to give up the home and pay the monies towards your unsecured creditors. I know I would make that argument against you if possible so I want you to discuss that possibility with your attorney so you have a Plan A and a Plan B if that should happen. A chapter 11 is your wild card but there are issues obviously with that and it is very expensive also. Good luck..One more thing: I tell my kids: you cant get what you want if you don't go for it and see what happens;....but with an experienced bankruptcy attorney.


Your question exceeds the resources of this Listserv: consult a local attorney.


If you file Chapter 7 and you do not sign a reaffirmation agreement for the mortgage, any deficiency in a later foreclosure sale will be discharged in your bankruptcy. Also, if you discharge all of your debt in your Chapter 7 then you are not going to be over the debt limited for Chapter 13. Just my two cents but as Mr. Bollinger wisely indicated, your case is complicated and you need to see a local attorney.

The information provided herein is general information only and not legal advice. The information provided herein does not create an attorney client relationship and is not a substitute for having a consultation with an attorney. It is important to have a consultation with an attorney as the information provided in this forum is limited and cannot possibly cover all potential issues in a given situation.


why not just file the Chapter 7 now and continue to negotiate with the bank? Since there is probably no equity in it, I doubt the trustee is going to be interested. Your personal liability for any deficiency judgment would likely be wiped out by the 7 without the need for a Chapter 11.

I don't think you need to file two cases, BUT of course you DO need to speak with a local attorney and hash out the details with that person.

This is AVVO, a place for users to obtain general legal information to general legal questions. I am glad to help you in any way I can, within those limits. I wish to make clear I am only communicating with you for the sole purpose of exchanging such general information, and nothing more. It is not legal advice, which I can not provide because among other reasons I know few of the necessary details of your situation. I do not purport to represent you in any way, shape or form. Of course, if you would like to seek out my services, and if you are a NY resident, I will probably not put up very much resistance but representation would still necessitate a signed retainer agreement between yourself and I. Thank you.


You should consult with a local experienced bankruptcy attorney relative to what is best for you. You may want to do a 7 if the plan is to obtain a loan modification or walk away.


You need to consult a Las Vegas bankruptcy attorney who has dealt with high value, strategic bankruptcy cases. Your questions are well beyond the scope of what should be answered on this forum and without the benefit of the protections attorney-client confidentiality.


Attempts at multiple filings aren't necessary, and may not even be adequate, to attain your apparent dual goals of: (1) discharging unsecured debt, including any mortgage deficiency; and (2) reducing the mortgage obligation to the value of the property. A successfully executed chapter 11 can accomplish both. The challenges and difficulties, of course, are in the execution of the reorganization. The other commenters are absolutely correct in asserting that a full response to your situation is beyond the scope of what can be done in this forum. Free in-person consultations are available. Best of luck.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer