Posted on: 13th Jan, 2010 08:24 pm
Hi I received my chapter 7 discharge at the end of 2009 (I also told my lawyer that I am giving up the house when I decided to file bankruptcy and I'm no longer am living at my property I'm renting instead ), my home is currently going into foreclosure and will be foreclosed at the end of 2010. Would I be able to start saving money in the bank during the foreclosure or do I need to worry about the bank coming after me on the money in my bank? Please advise. ...
Hi pepa,
Since you have been discharged from bankruptcy chapter 7, you are no longer responsible for the mortgage. If you do not make payments on the loan, the lender will foreclose your property. But he will not be able to come after your other assets like your bank accounts, etc. to recover the deficiency from the foreclosure. You are not liable for the mortgage any more and hence, you are also not liable to pay off the deficiency. Thus, I believe you can start saving your money in your bank account. However, keep the proof of your bankruptcy discharge with you so that if the lender comes after for the deficiency, you can prove your case.
Since you have been discharged from bankruptcy chapter 7, you are no longer responsible for the mortgage. If you do not make payments on the loan, the lender will foreclose your property. But he will not be able to come after your other assets like your bank accounts, etc. to recover the deficiency from the foreclosure. You are not liable for the mortgage any more and hence, you are also not liable to pay off the deficiency. Thus, I believe you can start saving your money in your bank account. However, keep the proof of your bankruptcy discharge with you so that if the lender comes after for the deficiency, you can prove your case.