Are we liable for the deficiency on the house sale after bankruptcy?

Formal reaffirmation requires approval by the bankruptcy judge. It is almost always inadvisable to reaffirm a mortgage since the lender retains a security interest whether or not it is reaffirmed. The impact of a reaffirmation agreement is that it is as though you never filed bankruptcy on the debt. In the event of default the creditor can sue for a deficiency unless there is a statute such as a residential anti-deficiency law. These is a serious issue and you should seek the advice of an attorney who is a certified specialist in bankruptcy law. Consult the State Bar for a listing of those attorneys in your area.

It depends on your local law on the subject. Here in Ohio, a deficiency judgment is good for two years only. In many cases, the lender does not pursue the deficiency and the judgment lapses.

Yes, the reaffirmation acts to make the loan survive just the same as you if you did not file bankruptcy.

You might. The main reason to not reaffirm the debt is that you would not be liable for a deficiency judgment.