Many people think that they will be forced to give everything up when they declare chapter 7 bankruptcy. This is not true however. You will have the choice of what you can give up and what debts to pay off as part of your bankruptcy repayment plan. There are some debts that have to be paid however. A second mortgage is one of the debts that must be repaid.
Do not be mistaken. Many people think that getting a chapter 7 bankruptcy discharge releases them from the obligation of paying all their debts. They think that if they are successful in filing for the discharge they will be debt free.
Chapter 7 Charleston WV is not a magic wand that will clear your debt. It will relieve the burden of the debt that is unsecured i.e. the debt that does not have collateral. However, debt that is secured must be made unsecured first. This is only possible by releasing the collateral against which the debt was taken. Mortgage is a secured debt.
If you intend to file for a chapter 7 discharge, you will have to fill in a Statement of Intent and submit this to the court. This statement tells the court what your intention is for all your secured debt such as your mortgage. If you have a second mortgage, you must let the court know if you intend to reaffirm your mortgage and repay it or if you would prefer to discharge the collateral and therefore clear yourself of the debt. This will mean giving your house up.
It is important to understand that when you take out a mortgage on your house whether it is the first, second or third mortgage, the lender has the right to take your house if you fail to pay the loan. If you repay your first mortgage and still fail to repay your second mortgage, the lender has the right to foreclose on your house.
Deciding to file for chapter 7 Charleston WV does not mean that you do not have to pay your second mortgage. You in fact have to repay all your mortgages, as they are all secured debt. You will otherwise face a situation where the mortgage companies foreclose on your property. If you find that repaying your first and second mortgage is too much of a burden, you should choose to surrender the property to repay your second mortgage.
If you decide to file for chapter 7 Charleston WV, ensure that you are getting the assistance of a reputable bankruptcy attorney. Many people put themselves in a tight corner trying to file for bankruptcy on their own. A reputable lawyer will ensure that your best interests are considered and the result is in your favor.
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There are several factors to consider when filing for chapter 7 in Charleston WV. Find out what they are and how you can tackle them at WV Bankruptcy Law Center.
