QUESTION
If I enter into a loan modification on my house after Chapter 7 bankruptcy, is this equivalent to reaffirming the mortgage?
Asked on Oct 05th, 2012 on Bankruptcy - Colorado
More details to this question:
My bankruptcy was discharged last year. I did not reaffirm the debt on my house in my bankruptcy.
13 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No.
Answered on May 21st, 2013 at 3:17 AM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Good question. Yes, it might be perceived as a novation, a new contract.
Answered on Oct 10th, 2012 at 11:20 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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It depends on the contract.
Answered on Oct 09th, 2012 at 10:41 AM
A loan modification is not the equivalent of a reaffirmation because it wasn't approved by the bankruptcy judge. However, it may not be a bad idea to require that the loan modification expressly state that the debt has been discharged by a bankruptcy & that the creditor acknowledges that it does not have the right to seek payment from the borrower personally. Best regards,
Answered on Oct 09th, 2012 at 9:32 AM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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It is possible to do a loan modification without reaffirming the debt; in fact, the government programs under HAMP specifically permit you to do a loan modification after filing for bankruptcy, without assuming personal liability on the note again.
Answered on Oct 09th, 2012 at 9:24 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The debt was discharged. If you modify it now, what you modify will not be discharged.
Answered on Oct 09th, 2012 at 9:20 AM
I know if I were the bank, I would treat the loan modification as a new loan and thus, not subject to the discharge. Feel free to contact me if you want/need to discuss the particulars.
Answered on Oct 09th, 2012 at 7:46 AM
Bankruptcy Attorney serving Oakdale, CA
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Law Office of Todd Whiteley
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It sounds like the earlier mortgage debt was discharged. You might need a refinanced loan rather than a loan modification as most loan modifications I've seen refer to "Loan Documents" as a default position in the event of non-payment. "Loan Documents" usually refers to the terms of the original loan documents now discharged. That could conceivably resurrect the discharged debt, but too many new questions to answer off the cuff like this. I would not sign any documentation that is not an actual loan modification offer to your liking. Negotiate the deletion of the original loan as the bankruptcy discharged that obligation.
Answered on Oct 08th, 2012 at 11:58 AM
Yes, you agreed to the new terms under the loan modification. You may have options if you have a source of income. I have a lot of mortgage and financial experience. No charge initial consultation.
Answered on Oct 08th, 2012 at 11:57 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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If I enter into a loan modification on my house after Chapter 7 bankruptcy, is this equivalent to reaffirming the mortgage.
Answered on Oct 08th, 2012 at 11:54 AM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
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The Salas Law Firm LLC
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If you sign a loan modification agreement post filing it has the same effect as signing a reaffirmation. After signing you are responsible for any deficiency should you fail to comply with the terms.
Answered on Oct 08th, 2012 at 11:51 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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A loan modification would be the equivalent of a Reaffirmation in the sense that in lieu to foreclosure you are saying that with the modification you will continue pay.
Answered on Oct 08th, 2012 at 11:50 AM
Daniel James Wilson
Yes. A loan modification is new contract.
Answered on Oct 08th, 2012 at 11:50 AM