It is also important to understand that your lien could be sold from one lending company to another. While a lien can change hands, it does not change your liability in the event that you file for bankruptcy. Even if your lien is now held by a different lender, they still do not have the right to sue you if you successfully completed Chapter 7bankruptcy. While the lender cannot file a lawsuit, they do have the power to foreclose on your home in the event that you do not make your agreed-upon monthly payments.
After filing for bankruptcy, particularly Chapter 7, a mortgage lender cannot sue you for your second mortgage. Why? Chapter 7 discharges debts. So long as you do not reaffirm your second home loan, your lender cannot legally file a lawsuit against you. In other words, Chapter 7 bankruptcy takes away your liability. If you would like to learn more about how Chapter 7 or 13 bankruptcy can affect your second mortgage, please do not hesitate to contact a San Antonio bankruptcy attorney from Malaise Law Firm as soon as possible. Our firm can guide you through this process.