Walking away from your mortgages and home equity loans when you
file a chapter 7 bankruptcy

This article, for individuals considering filing a chapter 7 bankruptcy in Suffolk County
on Long Island, was written by
Suffolk County bankruptcy lawyer Alan Pressman--
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Many people owe more money on their mortgage(s) than their house is worth.  This is
known as “negative equity” or being underwater”.  Many homeowners are underwater
by a large amount of money, and cannot afford their mortgage payments.  If such an
individual is eligible to file a Chapter 7 bankruptcy (and receives the Chapter 7
discharge), they have the option of a strategic mortgage default.  

In a strategic mortgage default, you stop paying your mortgages and home equity
loans  - - with the understanding that one of your mortgagees will, at some point,
start a foreclosure action and sell your house at a foreclosure sale.  However, if you
have received a Chapter 7 discharge (your mortgagees and home equity loan creditors
get listed as creditors on your Chapter 7 bankruptcy schedules) - - your mortgagees
and home equity loan creditors cannot come after you for any money after the
foreclosure is over.

Also, keep in mind that if you are opting for a strategic mortgage default, you will be
able to live in your home for a long period of time without making any mortgage

On Long Island, as of 2011, it seems that most homeowners who have stopped making
their mortgage payments are able to remain in their homes for at least 1 - 2 years.  
During that time period, the mortgagee will start the foreclosure action (by serving
you with a summons and complaint), and will proceed with the various steps involved
in the foreclosure action.

As the homeowner, you can remain in your home while the foreclosure action is going
on.  During this time, no one from the bank is allowed to come into your house or go
on your premises.

Not paying the mortgages enables you to save up money which you can use (i.e. for
moving expenses, security deposit, initial rent, etc.) to get set up in your new

This article was written by Alan Pressman, Long Island bankruptcy attorney

If you would like a free consultation on Chapter 7 bankruptcy with Alan Pressman, call
(631) 234-3883.  I have been actively handling bankruptcy cases on Long Island for
approx. 30 years.  My office is located at
2950 Express Drive South, Suite 109, Islandia, NY  11749

My fees are very reasonable.  

My law practice is  focused  100% on handling bankruptcy cases.  Bankruptcy
is  my entire law practice.

Call now for a free consultation.
(631) 234-3883

2950 Express Drive South, Suite 109, Islandia, NY  11749

Thanks for taking the time to visit my website.

Copyright 2011-2019, Alan Pressman Attorney At Law

Alan Pressman, chapter 7 bankruptcy lawyer near Rokonkoma,11779; Hauppauge,11788; Bohemia,
11716; Holbrook,11741; Islandia,11749; Central Islip,11722; Brentwood,11717; Islip, 11751; Islip
Terrace, 11752;Bay Shore,11706; East Islip,11730; West Islip,11795; Oakdale,11769; Sayville,
11782; Blue Point,11715; Lake Ronkonkoma,11779; Smithtown,11787; Nesconset,11767; Saint
James,11780; Lake Grove,11755; Deer Park,11729; Commack,11725; East Northport, 11731;
Huntington Station,11746; Wheatley Heights,11798; Wyandanch,11798; Babylon,11705; North
Babylon,11703; West Babylon,11704; Kings Park,11754; Centereach,11720; Holtsville,11742;
Medford, 11763; Middle Island,11953; Stony Brook,11790; Coram,11727;Port Jefferson Station,
11776; Patchogue,11772; Brookhaven,11719; Manorville,11949; Yaphank,11980;  Farmingville,
11738; Shirley,11967; Mastic,11950; Mastic Beach,11951;  Bellport,11713; Center Moriches,11934;
etc. --
serving all of Long Island since 1981.