Can you include mortgage debt in bankruptcy?

Question

My sister’s house foreclosed last year but she was still responsible for the mortgage’s which are now in collections. I think the total outstanding balance for those are around 300K, plus she has about 16K in credit card debt. If she files for chapter 7, can she include the defaulted mortgage’s? Would these creditors show up at the Trustee Meeting?

Answer 1

I think any debt you have except college loans.. not sure?

Answer 2

Yes, these debts can be included in your bankruptcy.

They may show up for the meeting, but it's strictly a formality.  Many times if there were a problem involving the debt, they would have already contacted your attorney or trustee and everything is worked out.  

Your trustee meeting is a formality also.....you are not going to be grilled with a lot of questions.  Only if you did something fraudulent will any questions be asked.  

I've sat in on several of them.  The only time a creditor showed up was from Sears disputing a guy who filed BK a month after buying nearly $2000 in tools.  Many states protect "tools of the trade" from seizure in bankruptcies, meaning you can't take a mans tools if he needs them for his job.  

Didn't work for this guy though.

Answer 3

yes to all

Answer 4

Probably, She should have done that before she lost the house.

That is sad. Most of the time creditors are a NO show.

RARELy do they show up