I am thinking of claiming bankruptcy. I have a first and second mortgage from different companies. Can I claim Bankruptcy on the second mortgage only and still keep my home and pay only the first mortgage? Also, if I have to include both first and second mortgage in the bankruptcy, how long do I have before i have to move out?
Tags: mortgage
Secured creditors are not automatically discharged when you file bankruptcy. This means that you cannot keep paying your first mortgage and stop paying your second mortgage. You either continue to pay both of them, or renegotiate with them, or surrender the house.
If you decide to surrender the house, you will normally have at least one to three months to find a new place to live.
This is a complicated issue, so for further information we suggest you contact a trustee.