My husband and I are in the process of declaring chapter 7 bankruptcy. We're keeping the home we live in, but are losing my home (from before we were married) to foreclosure. The certified mail from the bank says that the bank will start foreclosure proceedings this Saturday, July 14th. My question is, do I list my debt on that home as secured or unsecured? We won't be filing the bankruptcy paperwork before July 14th, but I'm not sure when the debt goes from secure to unsecure. Thanks.
Answer
Before or after filing for bankruptcy does not matter. Any mortgage is a secured debt (it is secured by the house). It gets listed on Schedule D. Likewise, a car loan is a secured debt (it is secured by the vehicle). A car lease or residential rental lease, by contrast, is a contract and gets listed on Schedule G.
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