Bankruptcy Question
Could someone please give me a short explanation of the difference between Chapter 7 and Chapter 13. Does the homeowner get to keep their home in either of these filings? Also what does it mean when the listing on the foreclosure list says "bankruptcy dismissed or discharged"? After discharge do you deal with the homeowner or the trustee. Thanks--EB
A Chapter 13 Banckruptcy is a reorganization of debt. You are not discharging your debt but working a plan for paying off or paying down debt. You get to keep most or all of your possessions under a 13.
A Chapter 7 Bankruptcy is designed to discharge your debt and may involve liquidating assets to do so. There are some exemptions and equity in a principal residence is one. From what I understand, the amount of the exemption varies from state to state. Also, there are some obligations that cannot be discharged in Chapter 7.
If the bankruptcy is discharged or dismissed then the property owner is the person you should be dealing with. I have found that working with the bankruptcy attorney can be helpful in putting a deal together. They are usually influential with the bankruptcy court.
Having worked for Ocwen, getting a deal on any VA property is pipe dream. Getting a deal on any Ocwen property is a pipe dream, your going to pay full value, and most likely any rehab work you may what to do will already have been done by agent representing Ocwen.