I filed Chapter 7 bankruptcy, and all my debts listed were discharged; can the bank still foreclose?


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Many homeowners still don’t quite get how bankruptcy works when it comes to foreclosures. A common question asked by many is if a bank can indeed foreclose on a home if it was discharged in bankruptcy. And, the short answer is . . .

 Yes, a lender can foreclose on your home — even if the debt owed was discharged in bankruptcy.

Following is a recent question of this nature answered by a bankruptcy specialist in an article entitled Can Your Lender Foreclose After Bankruptcy on Fox Business News. The homeowner wrote:

I filed Chapter 7 bankruptcy, and all debts listed were discharged in 2008. The bank has just notified me of plans to foreclose on a home that was discharged. They plan to put it up for auction in September. Can they do that?

And again, the answer is yes. As the bankruptcy in the article explained, “[unless and/or] . . . until the property is back in the possession of the bank, you are still the legal owner of the property.

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What Bankruptcy Actually Does for You If You’re Facing Foreclosure

If your mortgage debt is discharged in bankruptcy, it ONLY means you don’t have to pay back the loan. You STILL own the home and may be responsible for some expenses associated with it (eg, homeowners insurance, HOA fees, ongoing maintenance if you move out of the home, etc.).

Learn more about how to proceed if you’ve filed bankruptcy, but your lender hasn’t foreclosed (yet).

Learn more about How to Stop Foreclosure Using Chapter 13 Bankruptcy: What to Expect When You File, How Ch 13 Differs from Ch 7 & More

Following are links to lots of other posts here that can help you become clear about the foreclosure process, how foreclosure and bankruptcy works, and how you should proceed.

Good luck!

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Underwater On Your Home? Filing Chapter 7 Bankruptcy? Should You Reaffirm Your Mortgage?

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

Stopping Foreclosure: What to Do When the Bank Refuses to Accept Your Mortgage Payments & Tries to Escalate the Home Foreclosure Process

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Understanding Foreclosure Deficiencies and Mortgage Debt Forgiveness: Specific, Clear, Detailed Examples Given

I Received a 1099 From My Home Equity Lender: Tax Consequences of Foreclosure — with a HELOC

“Cash for Keys” Can Help if You Have a House in Foreclosure & Can’t Afford to Move  

Get Foreclosure Help: How to Find Agencies that Will Help You Stop Foreclosure – For Free

Cash for Keys: How Not to Lose This Money if You’re in Foreclosure and File Chapter 7 Bankruptcy

Stopping Foreclosure: What the “Produce the Note” Defense Is & How It Can Help You Save Your Home from Foreclosure (Or at Least Stall)

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Copyright ©2012 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author. Legal Disclaimer: The information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified attorney — in your jurisdiction — before taking any action based on the information listed here. 

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