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When you do chapter 7, if you wish to keep the loan alive, then yes, you should reaffirm the mortgage/heloc. otherwise, it will discharge in the bankruptcy case.
The lien will remain on the property if so, but the lender cannot collect
they can foreclose if there is enough equity though.
you would need to pay off the loan if you ever wish to sell or refinance it
reaffirmations are not required in the bankruptcy case though, so have your attorney weigh the pros and cons for you
What does that mean, discharge? If I don't reaffirm, what will happen? If I do reaffirm, and later have to give up the house, won't I be liable for the full loan amount even if I have lost the house? I don't have an attorney, I can't afford one.
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the debt will be eliminated, the creditor cannot collect, but the lien will stay on the home until it is paid.
if you reaffirm and have to give up the home, you are on the hook for that loan
if you have any other questions, let me know
thanks for your question, good luck
so it sounds like it is in my best interests to not reaffirm the loan, but stay in the house. Is that correct?
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