QUESTION
Was the reaffirmation legal and secondly, can we file chapter 13 to stop the foreclosure?
Asked on Oct 07th, 2014 on Bankruptcy - Virginia
More details to this question:
We filed chapter 7 in 2008 and was discharged in 2009. We were told that we had to reaffirm our mortgage loan to get a better rate/monthly amount. We signed the papers. However our attorney never signed anything. The courts never sent us paperwork regarding the reaffirmation being approved. A new servicer has taken over and we are in foreclosure status.
8 ANSWERS
William Rhymer
If you are otherwise eligible, you can file a Chapter 13 to stop a foreclosure whether you reaffirmed the mortgage or not. Talk to an experienced bankruptcy lawyer quickly!
Answered on Oct 14th, 2014 at 5:02 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You need to check with your attorney whether the reaffirmation was ever filed. If the reaffirmation wasn't filed, then you are not personally liable on the mortgage but the bank can still foreclose and sell the property because they have a lien on the house.
Answered on Oct 13th, 2014 at 1:23 AM
You will have to call the Bankruptcy Court and look at the Court file. Look to see if there is a Court Order approving the reaffirmation agreement. Yes, you can file a Chapter 13 to stop the foreclosure. You can also discharge the majority of any other debt you may have, depending on your income and expenses. Meet with an experienced Bankruptcy Attorney. Be prepared to pay for the consultation. With a "free" consultation, you get exactly what you pay for!
Answered on Oct 09th, 2014 at 4:27 PM
If the court approved the reaffirmation, then the reaffirmation was legal. It would certainly be in your best interest to find out if the court approved the reaffirmation or if the creditor even filed the reaffirmation requesting approval. Many attorneys, myself included, refuse to sign off on reaffirmation agreements & many courts will not approve unnecessary real estate loan reaffirmation agreements. If you qualify for the Chapter 13 program, none of the information you provided regarding the reaffirmation will affect your ability to stop a foreclosure. But qualifying for this program is always problematic, especially if you don?t have competent representation.
Answered on Oct 08th, 2014 at 4:21 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Yes, you should be able to file a Chapter 13. You will need to make sure at least 4 years have elapsed since you filed, which it sounds like is the case. Without the proper time you would not receive a discharge. You will also need to make sure that the arrearage and other debts with your income will be contained in a feasible plan. Visit with an attorney to look at the budgets and make sure everything will work.
Answered on Oct 08th, 2014 at 4:13 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes you can file a Chapter 13. The time frame is 5 years from the date you filed the Chapter 7 Petition.
Answered on Oct 08th, 2014 at 10:17 AM
You would have to check with the court to see if the reaffirmation was approved. If not, it is not binding. And yes, you could file a chapter 13 to postpone a foreclosure but your chapter 13 plan would have to demonstrate how you can cure the mortgage arrears or it won't get confirmed and you will eventually lose the house anyway.
Answered on Oct 08th, 2014 at 10:16 AM
You can file a Chapter 13 to stop the foreclosure.
Answered on Oct 08th, 2014 at 10:13 AM