Chapter 13 To Stop Foreclosure After Prior Chapter 7 Discharge

received an email question from someone who filed a Chapter 7 bankruptcy two years ago and is now facing foreclosure on his home mortgage. He asked me whether a Chapter 13 bankruptcy could save his house. In the old days, this person could file a Chapter 13 bankruptcy to stop the foreclosure. Under the new bankruptcy law, once you complete a Chapter 7 bankruptcy you are not allowed to seek relief under a new Chapter 13 bankruptcy for several years regardless of whether your current problems, in this instance a mortgage foreclosure, arose after the Chapter 7. More particularly, you cannot file a Chapter 13 case if your eceived a discharge in a prior Chapter 7 that was filed within the past four years. I told this person that the new bankruptcy law prevented him from filing a Chapter 13 to stop the foreclosure.

Comments

[edward]

Considering sole prprietor Chapter 11 because I owe more thatn $1M in secured mortgage debt - one of those who bought too many properties in FL and now all worth 50% of mortgage amount. Can I reaffirm the mortgages based on today's FMV under 11 or 13?

[edward]

Chapter 7 discharged in 2001 now behind on mortgage can I file a new chapter 13? Can I file a file a Chapter 7?

[Ms. Stuart]

On january 31, 2007 my chapter 13 was discharged, but unfortunately to several unforeseen accidents I've fallen behind with my mortgage and now facing foreclosure on my home. Im currenlltly employed and back to work full-time but I need to known can I file chapter 13 again in hopes of stopping the foreclosure on my home.

[Stacey Butler]

The last two post are correct. That person will be required to be in a 100% plan.

[will woodall]

I think he can still file the bankrupcty and get the benefit of the stay, but he will not be able to recieve a discharge. If he recently filed the chapter 7, there should not be much unsecured anyway.

[Ian Leavengood]

While you are prohibited from receiving a Discharge in the subsequent Chapter 13 bankruptcy, I believe that you may still take advantage of the Stay, stopping the foreclosure sale and reorganizing the secured Debt. This should be true notwithstanding the limitations on the automatic stay -- provided that the previous bankruptcy was not dismissed during the proscribed period of time for one of the reasons enumerated in the code.