It is strongly suggested that you take the advice of your attorney and not sign the Reaffirmation Agreement. Otherwise, by signing the Reaffirmation Agreement you would have just nullified the benefit of your bankruptcy filing. That means if you default on the loan with the lender in the future and the lender forecloses on its mortgage, the lender can come after you for the rest of the money if the foreclosure sale does not cover your whole debt with the lender--the lender will come after you for any deficiency after the foreclosure sale just as if you never filed for bankruptcy protection. On the other hand, if you do not Reaffirm the debt, you would get the full benefit of your bankruptcy discharge. That is if you default on the loan in the future with the lender and the lender forecloses on its mortgage, the lender cannot come after you for any deficiency after the foreclosure sale because the bankruptcy discharge has taken care of the short-fall--has discharged your personal liability on the loan. HEED THE ADVICE OF YOUR ATTORNEY: DO NOT REAFFIRM THE DEBT BECAUSE IF YOU DO YOU WOULD GO FROM FRYING PAN TO FIRE.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).