QUESTION
If I reaffirmed a second mortgage, can I stop paying even with discharged chapter 7 bankruptcy?
Asked on Feb 20th, 2013 on Bankruptcy - Arizona
More details to this question:
If I reaffirmed a second mortgage, can I stop paying even with discharged chapter 7 bankruptcy?
13 ANSWERS
Because you reaffirmed the second mortgage you are still legally obligated to pay it. If you default in the payment obligation the second mortgagee will sue you seeking a money judgment, or possibly even foreclose, although this is less likely. If sixty (60) days has not yet passed since the Reaffirmation Agreement was filed with the Court you can rescind the Agreement. If you rescind the Reaffirmation Agreement in a timely fashion you will have no further legal obligation to make the second mortgage payment, and can stop making the payment without any exposure to a money judgment being entered against you.
Answered on Feb 24th, 2013 at 8:22 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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If you reaffirmed a 2nd mortgage...which is extremely rare, you put your personal liability back on the loan. You can stop paying but they can foreclose or sue you.
Answered on Feb 24th, 2013 at 7:35 PM
If you reaffirmed a second mortgage, the creditor can sue you to collect if you stop paying. Reaffirming is a promise to pay despite the bankruptcy.
Answered on Feb 24th, 2013 at 7:35 PM
Bankruptcy Attorney serving Seattle, WA
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Henry & DeGraaff, PS
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The first thing I want to clarify is that you actually did reaffirm the debt. Many debtors will state their intention to reaffirm a debt in their bankruptcy schedules, but this alone does not reaffirm the debt. You must actually sign and file (either through your attorney or the creditor's attorney) a reaffirmation agreement with the court. It is very unusual for a first or second mortgage to be reaffirmed, and there really aren't many compelling reasons to ever reaffirm. If the debt was actually reaffirmed and you default, the creditor can sue you to collect. If it was not reaffirmed, you have no personal liability and the creditor's only recourse is to foreclose.
Answered on Feb 21st, 2013 at 3:49 PM
You can stop paying, but the debt still exists so the second mortgage lender could pursue you for damages.
Answered on Feb 21st, 2013 at 3:49 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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If you reaffirmed a debt, that debt was not discharged and you are liable. I suggest that you have your lawyer check to see if the Reaffirmation Agreement was filed with the Court. If it wasnt, it was not effective.
Answered on Feb 21st, 2013 at 3:48 PM
Bankruptcy Attorney serving Overland Park, KS
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Wellman Law LLC
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If you reaffirmed the debt and more than 60 days have passed since it was filed and you have already received the discharge it's too late to rescind and therefore you will be on the hook if they don't get paid off out of the foreclosure.
Answered on Feb 21st, 2013 at 3:47 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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You would have to amend the petition and surrender the house.
Answered on Feb 21st, 2013 at 3:47 PM
You can, but then you would be subject to foreclosure (just like you never filed bankruptcy) and collection of any post-sale debt (just like you never filed bankruptcy).? A reaffirmation agreement is a contract that basically says: "I agree to be treated by you as if I had never filed bankruptcy."
Answered on Feb 21st, 2013 at 3:47 PM
Based on the limited information provided, I would say that since you decided to reaffirm the second mortgage in bankruptcy, you are still technically liable for the note. This is dependent on whether or not you still live in the property, whether or not you will short sale, or if the house has been foreclosed upon.
Answered on Feb 21st, 2013 at 3:46 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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If you actually re-affirmed then the debt was not discharged, see your bankruptcy attorney or get one.
Answered on Feb 21st, 2013 at 3:45 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Stop paying if you wish, but you will owe on the loan you reaffirmed.
Answered on Feb 21st, 2013 at 3:45 PM
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 law of the state where you live and the type of loan. It would be best to talk to a good bankruptcy/foreclosure attorney.
Answered on Feb 21st, 2013 at 3:44 PM