How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

I am in Illinois. I have a discharged chapter 7 bk. I included

This answer was rated:

I am in Illinois. I have a discharged chapter 7 bk. I included my house in the bk because it had first and equity mortgages. We have gone to all the foreclosure calls at courthouse. They have extended every time. We have also spoke directly with Chase about a new mortgage and have provided all requested documentation timely.

Chase has come back with Chase Affordable Unemployment Program. It's a 6 month trial at 32% of current income which consists of my wifes FT job and my unemployment.

My question is: Is this the best deal and are their any "gotchas" I need to be aware of?

I am an attorney with 25+ years of legal experience and am working diligently on your answer while I await your response.

Please tell me:
Are you being asked to sign a new promissory note?
When was your bankruptcy discharged?
Did you reaffirm your mortgages in the bankruptcy?

Customer: replied 5 years ago.
It is a six month forebearance program agreement. September of last year was discharge date. Mortgages were not reaffirmed.
Thank you for your information

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

A six-month forbearance agreement would not have any negative consequence provided it does not require that you agree to assume any personal liability on the note.

Typically a forbearance agreement does not require an assumption of personal liability but I suggest that you verify this for your particular agreement..

Unfortunately the majority of these plans are not approved past the forbearance period.

Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.
Customer: replied 5 years ago.
The agreement specifically states "If you have received a discharge in bankruptcy, .... , you acknowledge that nothing contained herein is intended to impose personal liability for the loan in violation of such protections...." I have also had a credit couseling service tell me the same thing regarding not likely to accept their grant of 25k to catch up on arrearage. Why would they not accept it?

If you are able to catch up on the arrearage, they would be required to accept the arrearage and reinstate the mortgage. However they are not required to agree to a reinstatement plan outside of a chapter 13 bankruptcy or a modification plan. I do not have a logical explanation as to why a lender will not accept a modification in order to mitigate their losses however it has been my experience that more often than not the lender will not modify
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Worst case scenario I get to stay in my house another 6 months while paying 31% of current income (rent, basically)?
Yes that is correct

Thank you very much for accepting my answer! If I can be of assistance in the future, begin your question with: "FOR WEBLAW"