I Heard That ... I Could Keep All My Property
and Wipe Out the Debt on It.
and Wipe Out the Debt on It.
Wouldn't it be great if we could buy a house, file bankruptcy and keep the house while wiping out the mortgage? Or the loan on the car?
But can you imagine anyone would ever make loans again on those things, if you could?
Bankruptcy can eliminate your personal obligation to pay many debts but it cannot wipe out most liens on the thing you bought with a loan. For example, a mortgage is a lien you agreed to have placed on your house. So the mortgage lien is normally not wiped out and you still have to pay it off or risk losing the property.
But can you imagine anyone would ever make loans again on those things, if you could?
Bankruptcy can eliminate your personal obligation to pay many debts but it cannot wipe out most liens on the thing you bought with a loan. For example, a mortgage is a lien you agreed to have placed on your house. So the mortgage lien is normally not wiped out and you still have to pay it off or risk losing the property.
8/07
