CanI assume a mortgage even thoughI filed Chapter 13 and I’m still paying on it?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
CanI assume a mortgage even thoughI filed Chapter 13 and I’m still paying on it?
Asked on May 19, 2011 under Bankruptcy Law, Alaska
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Very likely not.
First and foremost, if you are still paying on the plan, you are still subject to it. That means that you cannot add significant new obligations--such as assuming a mortgage--which will impact on your ability to pay as per the plan, at least without bankrutpcy trustee approval. You can seek that approval, but it's unlikely you'll get; you should also ask yourself whether it's wise to add a new obligation, when you are still subject to the obligations in the plan.
Second, you would need bank approval to assume the mortgage, and that approval is very unlikely to be granted. You under Chapter 13; you are, without any insult being meant, not a good credit risk. Why would a bank allow the current obligee out from under it's obligation to substitute someone who is still under a bankruptcy plan?
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.