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Our home has a spa business loan attached to our mortgage,we are fling ch7,would we be able to save our home and get rid of that

Clermont, FL |

We want to save our home,but get rid of the spa loan attached to our mortgage. Is there a way around this. We owe a 900, loan that we are unable to pay that is why we are doing a bankruptcy ch7.

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Attorney answers 2


You cannot modify a mortgage in chapter 7. But chapter 13 may allow you to get some relief.

Without seeing the loan documents, I am not sure if the spa loan is a second mortgage, or whether you have one large mortgage that has the spa business as extra collateral.

If the second situation is more accurate, you may be able to cram down this mortgage in chapter 13.

But you will need to hire a bankruptcy lawyer to do this. I can't imagine a debtor attempting this on their own.

I handle bankruptcies in your area. Please call for a free consultation.


It may be possible if the fair market value of the property is less than the outstanding debt due on the first mortgage and if you file a chapter 13. Consult with an attorney to rough out a plan payment so you know what you are getting into.