Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.
Here the debt in Chapter 7 is discharged then you are free of it.You then have right to reaffirm the two notes on the house.If you do not then either one may file for foreclosure and take the house back, there is no deficiency action because the debt was discharged.You will need to be discharged from Chapter 7.If this has been pending that is an extraordinary amount of time.Normally 12 months or so for a Chapter 7 to complete it and be discharged.
You only start paying on the house notes if you want to reaffirm here.If you want to give it up don't pay either one of them.If house is underwater you are able to walk away here.They can foreclose but that's it.I would strongly consider that if you are severely underwater as the debts are gone upon discharge , they can only take the house.You can live there until foreclosure and eviction is complete and save the funds.
Make no payments unless you intent is to keep the house and reaffirm the notes.
I appreciate the chance to help you today.Thanks again.