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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hello I got another issue with chapter 7

This answer was rated:

I got another issue with chapter 7


Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.


She needs to reaffirm the mortgage if you want to keep it, she should have reaffirmed the loan in the bankruptcy, but if she has not make sure she does it now, so the property is not sold.

Customer: replied 4 years ago.

Whos is going to sell the property ? We are not behind nor we want to sell it now

if you did not reaffirm the loan, and you listed it in the bankruptcy the lender would be able to sell the property,

If the mortgage was not listed in the bankruptcy, it was not discharged and you can keep paying the mortgage and live in the home.
Customer: replied 4 years ago.

I don't think she did reaffirm the loan ,nor did the lawyer .

The lawyer knew we have great equity !but i will find out and get back with you thanks

If she did not reaffirm the loan, you need to find out if she discharged the mortgage in the petition, if she did, make sure you sign an agreement with the lender to reaffirm so you can keep the property
Customer: replied 4 years ago.

I will thank you

good luck
Customer: replied 4 years ago.

Hello again

It took me a while to answer back , because the bankruptcy lawyer and I have few issues ! I Gave her your suggestions and she went off on me ! but her is what i found out .

In the bankruptcy my wife claimed property to be secured debt , as Homestead , property will be retained , under .. other, explain (for example ,avoid lien using 11U.S.C ss522(f) Debtor will continue making payments to creditor without reaffirming ..Property is Claimed as exempt .

If the property is claimed as exempt under the homestead exemptions, and she is continuing to pay the mortgage, that is fine, however, you need to find out if the mortgage was discharged, if it was, the lender at anytime can start a foreclosure a reaffirmation agreement binds her to the mortgage. However, if she continues to make monthly payments the lender will not foreclose in most situations.
Customer: replied 4 years ago.

I have the discharged bankrubtcy where do i find out if the mortgage was discharged?

In her discharge letter the lender should be listed.
Customer: replied 4 years ago.

None of the unscured lenders(credit cards ) nor the only secured (mortgage) are listed in her discharge letter

If it is not listed look at her creditors list schedule d,e,f all debts should be listed, also, look at her statement of intention, and see if she reaffirmed the mortgage or listed it.
Customer: replied 4 years ago.

All is listed in list schedule , and the mortgage is in the statement of intention as i told you earlier , thats how it is printed


creditor's name ......

descriptions is secured property debt(homestead)

property will be retained , debtor will continue to make payments to creditor without reaffirming.

If retained and not reaffirmed, the loan would be discharged, however she will agree to retain the property by making monthly payments.

If she reaffirmed it, the loan would still be valid, and the lender would report her timely payments so her credit score would improve, since she retained it, that means the lender will allow her to keep the property if she pays the mortgage, but will not report it to her creditors, and they cannot sue her, only foreclose.

She can re open the bankruptcy and reaffirm the debt as well.
Customer: replied 4 years ago.

Ok so we are not in any danger if we keep paying !no one can take it away from us correct ,we only losing the reporting to credit agency !correct , how long will it take and how much it cost to reopen the case to reaffirm loan ?

You would be fine, as long as payments are made, I would still advise to re affirm the debt if you intend on paying and keeping the property, to re open the case, is fairly easy, expect an attorney to charge $750-$1500,
or you can contact the lender and have them send you a re affirmation agreement, and if all parties agree, go to the clerks office at the bankruptcy court, and they may help you file the motion to reopen
Customer: replied 4 years ago.

ok i will consult an attorney on Monday and contact the lender which by the way they just sold the loan to another bank effective tomorrow!!

good luck, and if you have any further questions please do not hesitate to ask.

If satisfied please provide us with positive feedback, thank you
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