Kemp, TX Bankruptcy Law Firms & Lawyers

There is no way to predict how this will affect your credit. The more important question is will signing a deed in lieu open the door for the lender to be able to sue you? Your discharge closed that door, but any new contract after the bankruptcy may re-obligate you for some or all of the debt. I don't recommend to my own clients that they do either a deed in lieu or a short sale after they file for bankruptcy protection. Instead I tell them to let the property foreclose.

Lien holder. As long as your Chapter 13 plan conforms to the bankruptcy law, then the lien holder is forced to comply with the terms of he plan. The lien holder can't bring suit against your cosigner because bankruptcy law prohibits suits against cosigners during the plan. When your plan is complete, the loan will be paid off or (it's is a long term loan like a mortgage), the bankruptcy court will issue a court order stating that the loan is current and the lien holder has no right to sue on a current loan. If the lien holder fails to file a proof of claim with the court, you, as the debtor, can file a proof of claim and the loan will be handled based on the information in your proof of claim?

You need to file a homestead at the county recorders office and claim the property as exempt on Schedule C of the bankruptcy paperwork. If there is a judgment lien against your property, you will need to file a motion to avoid the judgment lien. This motion is a document that is individually crafted and isn't a standard pleading form that is available.