QUESTION
Is there any advantage to reaffirming my mortgage after a chapter 7 bankruptcy?
Asked on Aug 07th, 2013 on Bankruptcy - Idaho
12 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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Yes. If you want to keep the house, the mortgage company will probably require you to enter into the reaffirmation agreement.
Answered on Aug 26th, 2013 at 11:05 AM
2 Awards
The only advantage to signing a reaffirmation agreement on your mortgage is that your monthly payments will be reflected on your credit report that's helping you reestablish your credit. I do not recommend signing a reaffirmation agreement due to the potential risk of subsequent default on the payments and liability for any resulting deficiency.
Answered on Aug 17th, 2013 at 1:17 AM
Deborah F. Bowinski
No, not in my opinion. And if it is truly AFTER your chapter 7 bankruptcy it is too late to reaffirm a debt anyway at this point in time.
Answered on Aug 17th, 2013 at 1:17 AM
Litigation Attorney serving Stockton, CA
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Patrick Jay Edaburn
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There are both advantages and disadvantages The big advantage is that your payments will show up on your credit report The big disadvantage is you will once again be fully liable for the mortgage debt.
Answered on Aug 17th, 2013 at 1:17 AM
Criminal Defense Attorney serving Southfield, MI
Partner at
Law Offices of Ezra N. Goldman P.C.
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The advantage is keeping your house. If you don't reaffirm, you will lose the house.
Answered on Aug 17th, 2013 at 1:16 AM
First of all, I am not sure you can reaffirm "after" a bankruptcy. You would have to reopen the case to file the reaffirmation.? Second, there is no advantage to you to ever reaffirming a mortgage. All the benefits inure to the mortgage holder. I have heard that some mortgage lenders are telling their bankrupt clients that they will not refinance a mortgage after bankruptcy where no reaffirmation was filed, but there is no guarantee that they would any way. I tell my clients to look elsewhere for refinancing. So NO, no advantage.
Answered on Aug 17th, 2013 at 1:16 AM
Regulatory Attorney serving Spokane, WA
Partner at
Deissner Law Office, P.C.
Only if you want to keep your house. If you don't reaffirm the mortgage company may foreclose and evict you. Typically they are most happy to let you stay if you reaffirm.
Answered on Aug 17th, 2013 at 1:16 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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Judges in central district won't let you.
Answered on Aug 17th, 2013 at 1:16 AM
William Rhymer
Usually not, especially if you are upside down in value. You must make the payments to keep the house. However, if you do not reaffirm and you can not keep the up the payments in the future, you can usually walk away from the house and the mortgage company can not come after you for a deficiency.
Answered on Aug 17th, 2013 at 1:16 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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This question depends heavily on your circumstances. Is there equity in the home or not? How easily can you afford the home? Does your Schedule I and J permit a reaffirmation? Some of the advantages include your mortgage reporting on your credit and no issues with receiving statements in the future. These are the main ones and it is entirely dependent on your circumstances.
Answered on Aug 17th, 2013 at 1:16 AM
General Law Attorney serving Cherry Hill, NJ
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Mark S. Cherry, Attorney at Law, PC
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Generally, there is no advantage to reaffirmation and I don't usually recommend it. The Mortgage still remains against the property whether you reaffirm or not. The reaffirmation is for the Note (promise to pay). It must be done while the case is open if you are going to reaffirm. One reason to reaffirm is that some lenders require it in order to modify your loan.
Answered on Aug 17th, 2013 at 1:16 AM
The advantage is that the lender promises to continue to report your payments, good or bad, to the credit bureaus. Sort of a hollow promise, as you can prove that you made your payment on time to any new lender by simply asking the mortgage company to provide you with an account history. Reaffirming a mortgage is a big risk, and many bankruptcy judges will not approve a mortgage reaffirmation.
Answered on Aug 17th, 2013 at 1:16 AM