Debts are not directly related to mortgage payments

These debts are not directly related to mortgage payments. Owing money to be able to settle your medical bills, or save a drowning business can lead to bankruptcy. If ever there is a foreclosure, the extent of liability will rely on the type of mortgage-recourse or non-recourse. To be able to opt for non-recourse loans, the borrower is not responsible to pay the dues using personal property other than the house which serves as the collateral for the loan. When you will file for bankruptcy through Chapter 7, your debt responsibilities are still there. In fact, your Investment Retirement Account can be utilized to pay off your dues.