Expert: Terry Leeders - 2/13/2008

Question
We were recently discharged on a chapter 7 and were able to save our home.  My son who had lived with us when purchased home was put on the financing to help us get the financing.  He has since moved on but is now in a Chapter 7 himself and not yet discharged and since we are only 1 month behind on mortgage payment the mortgage company is coming after him (us) they have ordered a motion for relief from the automatic stay.  Is there anything we can do to save our home at this point?  It was discharged under our bankruptcy and we were in same position about 15-30 days behind in mortgage yet they discharged us but now coming after him, wondering if his attory filed correctly?

Answer
A motion to modify, if granted allows the creditor to deal directly with the purchasers, it does not mean they will foreclose (although they can.)  You need to work with the lender to stay current and/or refinance the home if you are looking to keep the property.  The asset/debt was disclosed in his case, and your son and you have protection from the lender.  This is the way the lender can deal with you again, asking the court to remove your protection..on the theory that "a home is not necessary to an effective reorganization under the bankruptcy code."