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Do I have to continue to pay my house payments after I file bankruptcy?

Only if you want to keep it. If you are current on your house payments when you file chapter 7 bankruptcy and keep them current until the house is paid off (like you are supposed to do anyway whether you file bankruptcy or not), then the bank cannot foreclose and sell the house.

If you file a chapter 13 bankruptcy in South Carolina then you pay any back house payments owed at the time of the bankruptcy filing into the chapter 13 payment plan, but you must make all future house payments on time until the house is paid off or the bank can foreclose, whether you have made your chapter 13 plan payments or not. If you file a chapter 13 bankruptcy in the Western District of North Carolina then you will make a payment to the chapter 13 trustee which will pay the regular chapter 13 plan payment AND your mortgage payments for each month you are in the chapter 13 bankruptcy. For that reason, this is called a conduit plan.

If you let your house be sold at foreclosure (which is called surrendering it), then if you file a chapter 7 bankruptcy, you will not owe the bank any money. If the same thing happens and you file a chapter 13 bankruptcy, then if the bank does not get all of its money at the foreclosure sale, it can file a proof of claim with the bankruptcy court and be paid the unpaid amount (known as the deficiency) with the other unsecured creditors.

  • Learn More About Bankruptcy

    If its time to start considering a step toward bankruptcy we're here to help. I have been helping people through the process of filing bankruptcy in South Carolina for over 20 years. We are here for you if you have questions.
  • Download Bankruptcy Guide

    This guide is full of useful information about bankruptcy. It's a large PDF so it may take a few seconds to download.
  • Can I go to Jail for not Paying my Bills?

    No, not unless you committed a crime in the creation of the debt (for example, fraud). Simply borrowing money and not being able to pay it back is not a crime. Many creditors representatives will tell you lies on the telephone and say that they will have you put in jail. Perhaps they are too ignorant to know they are wrong or that it is illegal for them even to say that. See More Bankruptcy Q&A