QUESTION
Can I lose my home years later after my bankruptcy?
Asked on Jan 13th, 2013 on Bankruptcy - Virginia
More details to this question:
My bankruptcy was discharged in 2008. I never reaffirmed the mortgage and kept paying until 2012. In 2012, I was able to buy another home out right and walked away from old mortgage. Can I lose my new home now as a result of a collection for the old mortgage?
11 ANSWERS
Daniel James Wilson
No. Your debt was discharged. You are fortunate you did not reaffirm.
Answered on Jan 21st, 2013 at 1:25 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Probably not, but you should talk to your bankruptcy attorney.
Answered on Jan 16th, 2013 at 7:52 PM
Personal Injury Attorney serving Reno, NV
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Law Offices of William D. Cope, LLP
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It depends on the amount of equity you have in the home. In Nevada you have a Homestead exemption in the amount of $550,000 of equity in your home. You need to file an Homestead exemption form on your present home. Your old lender would have to sue you and then in the event that you have more equity than $550,000 could attempt to execute on your present home.
Answered on Jan 15th, 2013 at 12:20 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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If you are in North Carolina, the answer is no. The Bankruptcy discharged your personal liability on the loan, meaning that you cannot be sued. Being sued and having a judgment against you is the only foreseeable method for which you could lose your new home because of the old one.
Answered on Jan 14th, 2013 at 3:42 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No, as you did not reaffirm, you are discharged personally of the debt and it can not attach to the new property.
Answered on Jan 14th, 2013 at 3:41 PM
Bankruptcy Attorney serving Charleston, SC
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Davis Law Firm
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This is a question that can only be answered after a review of your prior bankruptcy filing. What type of bankruptcy, was the creditor properly listed and did it get notice are all issues that need to be reviewed. From your question, you understood that the lien on the property was not discharged in the prior bankruptcy. The lender can usually foreclose on the property. The lender may or may not be able to come after you for a deficiency for any amount still owing on the original note after the property is sold at a foreclosure. You need to contact your bankruptcy attorney who may be able to answer your question quickly and easily since he or she should be familiar with your case.
Answered on Jan 14th, 2013 at 3:41 PM
No. Your obligation to repay the mortgage debt was discharged in your 2008 bankruptcy. Code Section 524(f) allows a debtor after bankruptcy to voluntarily repay any debt, but such voluntary re-payments do not create a new obligation after the bankruptcy discharge. The mortgage debt remains discharged in bankruptcy. When the bank forecloses they will be able to sell the old house at auction, but the fact that you did not reaffirm the mortgage debt means that the bank will not be able to seek a deficiency judgment against you if they are not made whole from the foreclosure sale proceeds. You are protected by your discharge, and your new home is safe.
Answered on Jan 14th, 2013 at 3:40 PM
As long as you didn't reaffirm the mortgage on the property you owned when you filed your bankruptcy, the debt is discharged. If the mortgage company attempts to sue you to collect on this debt, it is a mistake & you should return to your bankruptcy attorney to obtain damages for violation of the bankruptcy discharge. In addition, your bankruptcy discharge is a complete defense to any suit brought by the mortgage company. In more than 30 years handling bankruptcy cases, I have only seen egregious mistakes like this a couple of times.
Answered on Jan 14th, 2013 at 3:40 PM
Richard hirsh
The simple answer is yes the bank can foreclose on the mortgage even though you were discharged and did not sign a reaffirmation. However, the bank cannot take a deficiency judgment on the mortgage note.
Answered on Jan 14th, 2013 at 3:39 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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No. Your personal liability on your old mortgage was discharged in the bankruptcy.
Answered on Jan 14th, 2013 at 3:38 PM
Bankruptcy Chapter 7 Attorney serving San Diego, CA
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Law Office of Asaph Abrams
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I assume your bankruptcy case had been closed upon discharge and isn't pending and no relevant objections exist. The mortgage debt on the old home-which preexisted the bankruptcy and wasn't reaffirmed in that bankruptcy would have presumptively been discharged, so further liability for that debt (or canceled-debt income), doesn't arise.
Answered on Jan 14th, 2013 at 3:38 PM