We’ve heard this story many times over the years (two of our writers at California Loan Find were previously bank employees) and it goes like this,
“I’ve declared personal bankruptcy and now our bank says our mortgage agreement is null and void – what do I do”.
First of all, if you are able to make your mortgage payments and you are not that far behind in your payments then you will be fine. You can relax. But now you want to make sure that you have all your bases covered, T’s crossed and I’s dotted. This requires some patience and due diligence on your part, but the stakes are very high – it’s your home!
If the bank says your mortgage is null and void because you have recently declared chapter 7 you must get your bankruptcy attorney or trustee involved to follow up with your bank, get your interests expressed, and your State’s laws employed. If you don’t have a trustee or attorney acting for you there is still a way to push this through so you keep your home.
You may have to request that your case be reviewed a few times before the slow wheels of your bank start moving in the right direction. In most Chapter 7 bankruptcy cases in California you can keep your home and one vehicle for getting to work. Every other asset you have has to go to your debtors.
Don’t let any bank or bank employee tell you that your mortgage is Null and Void. As long as you have a steady income and you are making a payment every month in full – you’ll keep your home.
Click here to review the different chapter 7 bankruptcy schemes in California law.
Some more resources on Chapter 7 Bankruptcy below:
- Chapter 7 Bankruptcy Explained – from Ask Mr. Credit Card
- Chapter 7 In California – from Debt Consolidation Care
- San Jose Bankruptcy Attorney Discusses the Chapter 7 Means Test – from California Bankruptcy Lawyer Blog
- Bankruptcy Exemptions for California – from AV Bankruptcy Attorney
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A LOAN CALCULATOR FOR CRUNCHING YOUR NUMBERS IS BELOW; Enter your loan amount, how many years, the interest rate, and payment frequency (14 for biweekly, 30 for monthly, 7 for weekly. Very helpful so you know exactly what the loan will cost you in interest payments and you will know the total COB (cost of borrowing).
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