QUESTION
Does Chapter 7 bankruptcy automatically accelerates a debt?
Asked on May 22nd, 2017 on Bankruptcy - California
More details to this question:
I filed chapter 7 in 2010 and intended to reaffirm my mortgage debt. However, the bank never signed an agreement and the debt was discharged. I want to raise the statute of limitation defense, which is only valid is the debt was accelerated. The lender never sent an acceleration note.
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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I've never read your mortgage, so I don't know the terms of your mortgage. Most mortgages with large lenders are only accelerated if the lender sends a notice to you that it has been accelerated. You can't reaffirm a mortgage, reaffirmation of a mortgage gives a debtor significant obligations and no benefits. That will never pass the "best interest of the debtor" test. You are not personally liable on the mortgage but it is a lien against the house.
Answered on Aug 12th, 2017 at 7:17 AM
Chapter 7 bankruptcy does not accelerate a mortgage loan. You may want to actually read the terms of the loan contract.
Answered on Aug 09th, 2017 at 4:27 PM
1 Award
No, it was not accelerated. You do not have a defense.
Answered on Aug 09th, 2017 at 4:24 PM
You're not clear about what your objective is: stay in the house, foreclose...? Whether or not you reaffirmed you've probably been paying your mortgage otherwise your mortgagee would have foreclosed.
Answered on Aug 09th, 2017 at 4:23 PM