Creditors and Bankruptcy/bankruptcy / usda

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Expert: David - 9/16/2009


Question
I will be meeting with an attorney to file chapter 7 soon but am not sure about one of my debts.

I had a home loan through USDA that went into foreclosure. Can I file bankruptcy on that loan? Or not because it is a Government agency?

Answer
Christine-

If I understand this correctly the USDA loan program is part of a critiria for qualifying in a rural area.  My understanding is like most other mortgages it can be backed by a governmental program like Freddie Mac or Fannie Mae. If that is the case it would be includable in a chapter 7 bankruptcy like any other mortgage.

You will want ask this specifically of your attorney to make sure that applies in your state.

Good luck.

David

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