Expert: Terry Leeders - 2/19/2009

Question
I HAVE A HOUSE THAT COLLAPSED DUE TO FOUNDATION PROBLEMS AND THE INSURANCE REFUSES TO COVER THE LOSS. I AM CONSIDERING FILING BANKRUPTCY ON THE REMAINING BALANCE OF SAID HOUSE ALONG WITH A COUPLE OF OTHER SMALL DEBTS BECAUSE I HAVE BEEN OUT OF WORK SINCE 2005. MY QUESTION IS, CAN THE BANK THAT HOLDS THE MORTGAGE ON THE COLLAPSED HOME, PLACE A LIEN AGAINST ANOTHER HOME THAT I OWN AND LIVE IN THAT IS PAID FOR IN FULL, OR CAN THEY FORCE ME TO SELL THE HOME THAT I LIVE IN AND IS PAID FOR IF I FILE BANKRUPTCY

Answer
They cannot put a lien on anything once you file the case, however, depending on where you live now, you might need a chapter 13 to protect the home. You can surrender the collapsed home in full satisfaction of the debt in most chapter 13 plans though, however, which means they won't get paid, they just get the home and land.