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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 17887
Experience:  B.A.; M.B.A.; J.D.
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i did a bk and it has been dischared. im doing a loan moldifation

Resolved Question:

i did a bk and it has been dischared. im doing a loan moldifation but the lender said i cant cause i need a reaffiematin of debt. My bk lawyer say they dont do that. I have 7 days until i lose my house unless i get that
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 7 years ago.

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.

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