Quote:
Originally Posted by bossku69
I think people file chapter 13 because they THINK credit card companies will come take your house.
A girl I dated a while ago in college, her parents filed bankruptcy. they never had to pay off any credit cards they had and they continued to live in their house but their monthly payment was a LOT less. I asked her one time why they did it and she said the just consumed to much debt and could not make the payments and their interest on their mortgage was like 12% OUCH!
after the bankruptcy they somehow got a lower rate for their house like 7 or 8%. i have no clue how or what they did, but somehow was better than walking away from debts
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I doubt that is true because you need an attorney to file bankruptcy, and once you speak with one, you'll know what your rights are and what the creditors can and cannot do.
Sometimes a lender will renegotiate a mortgage in bankruptcy if they think they'll come out better in the long run than they would if they foreclosed. (They won't renegotiate principle, but they will adjust interest rates and loan terms)