QUESTION
How can we go back and reaffirm our home after our bankruptcy file was discharged?
Asked on Sep 13th, 2011 on Bankruptcy - Arizona
More details to this question:
Our lawyer was absent for our trustee hearing and left the firm during our case without notifying us. Our chapter 7 bankruptcy (due to failed business) has been discharged, but we have now discovered she did not inform us that we needed to reaffirm our home before the discharge, or the bank account that we must keep. Our bank now says they can't reaffirm with us. How can we fix this?
14 ANSWERS
Samuel Lee Tucker
As long as the bank is happy with getting paid, why bother?
Answered on Jun 24th, 2013 at 1:19 AM
Nothing is broken. As long as you pay on your home, you are safe from foreclosure. Most knowledgeable bankruptcy attorneys will NOT reaffirm home loans. Your bank is leading you against your attorney who did the right thing for you.
Answered on Sep 28th, 2011 at 9:53 AM
Daniel James Wilson
I never allow my clients to reaffirm. Reaffirmation means you are taking back the debt you just discharged. You don't have to reaffirm a mortgage. So long as you make the payments creditor cannot foreclose. But what happens if you reaffirm and a couple years later you decide you just cannot afford the keep the house or you get tired of owing $300,000 for a house that is worth $200,000. You are stuck unless you can come up with the difference. The bank will threaten all sorts of stuff, like you cannot pay on line or cannot pay by automatic withdrawal. Big deal. All the above is academic because you must reaffirm before the case closes. Its too late. Don't know what you mean by bank account you must keep, but if it involves reaffirmation of a debt don't do it.
Answered on Sep 16th, 2011 at 1:50 PM
You cannot sign a reaffirmation agreement after the bankruptcy is discharged, it's too late.
Answered on Sep 16th, 2011 at 7:51 AM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
It is not typical to reaffirm a home mortgage since the lender retains its security interest in the property. You can keep the house as long as you make your regular payment.
Answered on Sep 16th, 2011 at 7:34 AM
judith runyon
You are not require to reaffirm mortgages in any bankruptcy - only car loans in a chapter 7, if you want to keep the car. Never reaffirm mortgages.
Answered on Sep 16th, 2011 at 6:19 AM
Bankruptcy & Debt Attorney serving Longmont, CO
at
William Edward Zurinskas
Update Your Profile
Colorado bankruptcy law doesn't require that you reaffirm your home loan in order to retain the real estate, so most debtors do not reaffirm home loans. To reaffirm a debt, the reaffirmation agreement must have been made before discharge, so under your facts it is too late to reaffirm a debt. It is also unusal to reaffirm a bank account just to keep it. You should talk to another attorney about the effects of not reaffirming a debt.
Answered on Sep 15th, 2011 at 10:54 PM
Consumer Bankruptcy Attorney serving Worcester, MA
at
Law Offices of James Wingfield
Update Your Profile
Generally speaking you cannot reaffirm your debts after the bankruptcy case is closed. You could, in theory, file a motion to reopen your bankruptcy case and then file another motion to allow a reaffirmation agreement to be filed late. The real question is why do you feel the need to do so? A reaffirmation puts the personal responsibility for a particular debt back on you. If you were to have reaffirmed your debt, and you fall behind on your mortgage and the home is taken in a foreclosure, any deficiency (the amount due under the reaffirmed note) will be a liability that you still owe to the bank. The bank may sue you to recover the debt, or if they forgive the debt, you could end up with some large tax liabilities. The discharge you received relieves you of that problem.
Answered on Sep 15th, 2011 at 10:46 PM
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
Update Your Profile
Once the discharge is entered you cannot reaffirm.
Answered on Sep 15th, 2011 at 10:46 PM
Bankruptcy Attorney serving Hayward, CA
at
Carballo Law Offices
Update Your Profile
Mortgages need not be reaffirmed in California. Just keep paying. Chapter 7 does not affect a mortgage loan, which is a secured loan. Bank accounts are not debts that need to be reaffirmed anywhere. Only loans secured by liens on personal property, such as a car, may have to be reaffirmed if the bank insists and it is otherwise advisable (and the court approves it). Most bank employees, except those higher up in the bankruptcy department, don't know anything about bankruptcy or don't know that the laws of your state affect how federal bankruptcy laws are applied.
Answered on Sep 15th, 2011 at 8:03 PM
Glen Edward Ashman
First of all, report your lawyer to the state bar (and the whole law firm). Also report them to the United States Trustee. They may get disbarred (and should). As for reaffirmations, no harm was done. NEVER reaffirm a house. You can't now, but it would have been malpractice for your lawyer to have allowed it. With no reaffirmation, as long as you pay, you get to keep your home and the bank cannot take it, and you can walk with no penalty at any time if you want. If you reaffirmed, you'd lose that right to walk. Bank accounts don't get reaffirmed so that part of your post makes no sense.
Answered on Sep 15th, 2011 at 10:56 AM
Bankruptcy Decision Attorney serving San Diego, CA
at
Law Office of Daniel G. Shay
Update Your Profile
I never re-affirm mortgages there is no need. Just keep making the mortgage payment and you keep the house.
Answered on Sep 15th, 2011 at 9:46 AM
John Leo Greifendorff
Many misunderstandings in this question reaffirmation of your home? bank account you must keep? The firm from which your lawyer departed likely owes you a duty to consult with you and make right any error or miscommunications. Talk to them. If they are recalcitrant talk to the local bar association, if that doesn't work talk to the state bar association. You might also have a consultation with another attorney in the bankruptcy field. Check www.nacba.org to get a lead.
Answered on Sep 15th, 2011 at 9:45 AM
Spencer Hale
Why would you want to reaffirm a mortgage? You should be able to just keep paying on it and keep the home.
Answered on Sep 15th, 2011 at 9:34 AM