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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2832
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I filed Chapter 7 in December, 2009. My debts wer discharded

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I filed Chapter 7 in December, 2009. My debts wer discharded in March, 201, including a mortgage for 120 K and an Equity Line of Credit for 30 K on a house that I had appraised just before thge bankruptcy for 60 K. I have not reaffirmed with anybody, but have continued making the mortgage and EQC payments. My wife and I are both on SSDI and she is getting long-term disability insurance payments. What recourse does the ELC have if we stop those payments, whether we stay in the house of not?

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

Since you did not reaffirm, they cannot collect on the debt.

Terry L. :

If you fall behind, the lender can foreclose to transfer the home back to them. but you won't owe anything on these loans.

Terry L. :

so, you can keep them by making the payments, or you can walk away and not owe another dime since you did not reaffirm.

Terry L. :

Such a simple answer, sorry the attorneys' office was of no help!

Terry L. :

Thanks for your question, good luck.

Customer:

Well, that's pretty close to what I got from the attorney's office, but at least in this case I get to ask follow-up from the actual attorney - right? So, what happens if I just stop paying the 2nd? Have they no possible recourse?

Terry L. and 4 other Bankruptcy Law Specialists are ready to help you
if there is equity, they could always foreclose, but it is rare. there would have to be enough to pay off the 1st, pay all foreclosure costs,then get enough to pay off their loan. This is very uncommon in today's market.