How Long Can I Stay in My Home if I File Chapter 7 & Do not Reaffirm the Loan?
If You Are Current on Your Mortgage
- If you are current on your mortgage when you file Chapter 7 bankruptcy, the mortgage company will most likely let you stay in your home. According to L. Jed Berliner of the Bankruptcy Law Network, you may keep your house if you continue to make your payments on time after you file bankruptcy.
If You Are Behind on Your Mortgage
- If you are behind on your mortgage payments, the bankruptcy and foreclosure process will take about three to four months. According to an article by attorney Stephen Elias on NOLO legal solutions website, you may be able to work with your lender to find a way to catch up on any missed payments; if that doesn't work, you will need to move out.
- Moving out depends on the state of your mortgage payments. If you are current, you will most likely be able to stay in your home without reaffirming your mortgage, provided you continue to make payments on time. If you are behind and cannot catch up and make regular payments, start looking for a new place to live at least one month after you file for Chapter 7 so you can be out of your home before the foreclosure process is over.