#1 Rated Bankruptcy Lawyers in San Diego

How Will Bankruptcy Affect My Mortgage?

If you are like the many Americans considering filing for bankruptcy, you may be wondering what will happen to your mortgage. For most of us, our homes are our most significant investment. It is where we spend time, raise our families, and the thought of losing our homes is devastating. A major concern for many homeowners in San Diego is whether they will lose the roof over their heads if they file for a chapter 7 or chapter 13 bankruptcy. The good news is that your mortgage company is not allowed to raise your interest rates or change your loan as a penalty for filing for bankruptcy. However, there is a relationship between bankruptcy and your mortgage that we will discuss below.

Mortgages and Chapter 7 Bankruptcies

Chapter 7 bankruptcy is known as liquidation bankruptcy. The bankruptcy trustee will sell most of the debtor’s property to pay creditors. If you file for a Chapter 7 bankruptcy in California, you will likely be able to keep your home. However, you will need to continue making your mortgage payments on time. If you would like to abandon your home, you have the choice of stopping your mortgage payments. The Chapter 7 bankruptcy will discharge your Mortgage Debt related to your home loan at the end of the bankruptcy. You will lose your house, but you will not have to make any more payments, and you will not be on the hook for missed payments. In other words, you can include your mortgage in a Chapter 7 bankruptcy.

Mortgages and Chapter 13 Bankruptcies

A Chapter 13 Bankruptcy is more like a structured repayment plan than liquidating all of your debts. In a Chapter 13 bankruptcy, you will be required to work with the trustee to file a plan for how you will repay your creditors. Typically this plan will last between three and five years. Chapter 13 Bankruptcy plants do not affect your home mortgage. You can file for chapter 13 bankruptcy in San Diego and keep your home. As with a Chapter 7 bankruptcy, you must continue to make your mortgage payments during and after the bankruptcy process. There will be no discharge of mortgage debt after a Chapter 13 bankruptcy is finalized.  

If you were behind on your mortgage payments, you could choose to pay your mortgage late well in a Chapter 13 bankruptcy. You can also choose to include the amount in arrearage into your Chapter 13 debt repayment plan. In some cases, you may have the option to reaffirm your mortgage debt to avoid losing your home in a Chapter 13 bankruptcy. You will still need to continue making your payment, but your lawyer can communicate with the lender and attempt to execute a new document that confirms your intent to keep paying.

Contact a San Diego Bankruptcy Lawyer

If you have questions about how filing for bankruptcy will affect your mortgage, the best thing you can do is discuss your case with a skilled lawyer. Contact the Bankruptcy Law Center today to schedule your free initial consultation.

See What Our Clients Have To Say

Yelp Review

Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
Yelp Review

Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
Google Review

Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

Google Review

Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

Google Review

Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
Yelp Review

Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
Facebook Review

Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

Yelp Review

Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
Google Review

Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

Ready To Eliminate Your Debt?

Bankruptcy is still the best option. Other debt plans make promises, but only bankruptcy delivers.




1230 Columbia St. #1100 San Diego, CA 92101


11500 Olympic Blvd., 4th Floor Los Angeles, CA 90064


380 South Melrose Drive #308 Vista, CA 92081
© 2023 Bankruptcy Attorneys. All Right Reserved.

Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy

© 2023 All Rights Reserved.