Edie
Lv 4
Edie asked in Politics & GovernmentLaw & Ethics · 1 decade ago

Bankruptcy: I was asked this but I have no clue. Can you include a federal loan when filing bankruptcy?

For example a Farmer's Home Administration loan?

Update:

I should have mentioned that the person asking the question is not living in the home. it was sold in 1995 for less than what was owed. Now, almost 15 yrs. later it pops up out of the blue and they are garnishing her wages. She wants to file bankruptcy. They can't take the house because she doesn't own it. This all came about because a dishonest realtor said because she was low income Farmer's Home would write it off. Now she is in trouble after all this time.

4 Answers

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  • 1 decade ago
    Best Answer

    jeffrey v is partially correct.

    when you file bankruptcy, you MUST list on your petition ALL debts you owe, no matter who you owe or whether they are dischargeble (even family members and uncle sam).

    FHA loans are typically home mortgages, which means they are secured by your residence. secured debts MUST be included in your bankruptcy and CAN be discharged under a Chapter 7 BUT you would not be allowed to retain the underlying collateral. can't have your cake and eat it too. if you want to keep the house, you must get your payments current and continue to pay (or consider a Chapter 13 that would allow you to catch up the delinquent amount over time).

    federal student loans are another example. although unsecured, they are nondischargeable (which means bankruptcy won't erase them no matter what--there is a very, very limited exception but it does not apply to most). they MUST be included anyway.

    if you have questions, it's best to ask a licensed, competent bankruptcy attorney in your state.

  • Flower
    Lv 7
    1 decade ago

    My opinion is that you do not lose your home just because you file a bankruptcy unless you do not want to continue to pay your mortgage and you walk away from the house. If you plan to keep your home, it does not get included in a bankruptcy. I am not even sure your home loan can be included. I don't think it has to be.

  • 1 decade ago

    This is an example of a secured debt, in that the house and the land it sits on are collateral for the loan. This type of debt as a matter of law is generally undischargeable, both because it is a secured debt and the fact that the creditor is the US government.

  • 3 years ago

    you could, in basic terms as you could upload late income tax to a financial ruin. a minimum of you could on a financial ruin 13. financial ruin 13 arranges for the adjustment of bills of a individual with customary income. (financial ruin 13 enables a debtor to maintain sources and pay bills over the years, in many cases 3 to 5 years.) Unsecured bills which contain credit enjoying cards are paid back 50 cents on the greenback, even nevertheless, bills to the federal government are paid back greenback for greenback.

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