QUESTION
How do I reaffirm mortgage after bankruptcy is discharged?
Asked on Jun 05th, 2013 on Bankruptcy - Colorado
More details to this question:
My husband had a chapter 7 bankruptcy which was discharged in 2009 but our home mortgage was not reaffirmed and now no one will refinance the mortgage unless it is reconfirmed. Is there a chance the courts would reopen the case to reaffirm the mortgage? How long would it take and what would it cost? I have been told that all state courts refuse to reopen a bankruptcy for this reason, is there any way around this?
8 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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No.
Answered on Jun 11th, 2013 at 9:35 PM
Richard hirsh
It would be the bankruptcy court to decide whether to reopen the case, not the state court. However. it might involve first also vacating the order of discharge, which can be a complication. And the bankruptcy judge might decline to approve the reaffirmation and as such it wold all be a wasted effort.
Answered on Jun 10th, 2013 at 12:16 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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This is a federal court issue and it would be extremely hard to reopen a case for this purpose. If you have a good fact pattern, like you have a lot of equity in your home, then maybe it's possible. $290 to reopen the case (filing fee) + hourly for the lawyer is what you should expect. Maybe someone will do it for flat fee, who knows.
Answered on Jun 05th, 2013 at 8:19 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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I don't know of any way that you can reaffirm the mortgage through the bankruptcy case. The reaffirmation has to be filed before discharge, so you are too late. You may be able to enter into some kind of written agreement to repay the debt with your mortgage company, so I would try to do that.
Answered on Jun 05th, 2013 at 8:18 PM
David John Tybor
Although the likelihood of getting your loan refinanced without having the original loan reaffirmed in the bankruptcy is pretty low, the bankruptcy court in the southern and middle district of Florida offer a solution. They now offer a LMM program in a chapter 13. Most likely you have no unsecured debts because of your chapter 7 discharge. And now you could file a Chapter 13, to enter into the Loss Mitigation Mediation Program and have your Lender and you come to a new agreement under the Federal Court and U.S. Trustee oversight. It will depend on whether your home is worth more or less than what you owe, and the amount of your gross income. But you stand the opportunity to be in a Chapter 13 for the 9 or 10 months that it takes to get the loan mitigated/modified.
Answered on Jun 05th, 2013 at 8:18 PM
You cannot reaffirm any debt after your bankruptcy has been discharged. Bankruptcy law requires any reaffirmation to occur before the discharge is entered. In addition, the only reason to reaffirm is to persuade the mortgage company to report your ongoing payments to the credit bureaus. In exchange, if something goes wrong, you could be liable for tens of thousands of dollars in losses if something should happen and you can't afford to keep your home. There is an easy way to resolve the issue of showing that you make your mortgage payments on time that doesn't involve this kind of risk. Ask your bankruptcy attorney about it.
Answered on Jun 05th, 2013 at 8:18 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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A reaffirmation must be filed with the Court before discharge. Once discharge has been entered, it is too late to reaffirm a debt. Theoretically you would have to reopen the bankruptcy, set aside your discharge, and then reaffirm the debt, then get your discharge reentered, and close the case. As far as I can tell, Idaho would not be willing to do this. Deadlines are deadlines for a reason.
Answered on Jun 05th, 2013 at 8:17 PM
Deborah F. Bowinski
No, you cannot reaffirm your loan now. And in all honesty, it is rarely a good idea to ever reaffirm a mortgage. There is no requirement that the loan be reaffirmed in order to refinance. Find another lender and/or work with a more knowledgeable broker.
Answered on Jun 05th, 2013 at 8:17 PM