Expert: Terry Leeders - 5/14/2008

Question
Already in chapter 13,home included. Husband lost his job. Can I save my home by filing chapter seven ?

Answer
Unfortunately, Chapter 7 will not do anything to save the home. That is a debt liquidation bankruptcy.  Chapter 13 bankruptcy is the only bankruptcy option to save the home.  You can look to refile the case if it gets dismissed if he gets back to work, or you can refinance to bring the loan current, or you may sell the property.  If you do not want it anymore, then yes, a chapter 7 would be beneficial.  Have him talk to his lawyer, as there are options to possibly defer payments that are due.