We recently filed Chapter 13 to avoid foreclosure, but now I am thinking about letting the house go and changing to Chapter 7? We can’t afford the house mtgs, taxes and insurance on our reduced salary. Question – in a chapter 7 can the creditors (?) come in and take stuff from your house? If so, what are they looking for – high ticket items? We do not have any. Husband is afraid they will come in and take all kinds of stuff. I disagree. With all the foreclosures coming down right now, they do not have the time or expense to chase all these down.
What about the 2 cars we are behind on payments on?
Has anyone gone thru this?

Our mortgage was a variable rate mortgage, and my husband had lost his job and bills were out of control… We decided to cut our losses and do a short sell and avoid foreclosure (which had started). At this present time we are slowly regaining financial abilities even thru our country’s economic hard times…We want to purchase another home in about a year. Will banks see me as a risk, and deny me a mortgage because of my past situation?