QUESTION
What to do when my mtg was included in BK Ch 7?
Asked on Jun 26th, 2013 on Bankruptcy - Arizona
More details to this question:
I filed Chapter 7 bankruptcy in Dec 12. I clearly stated to my attorney that I wanted to keep my home. After requesting my credit report, I noticed that the mortgage has been included. I have been back and forth with the bank and attorney to have this resolved. The only response I get is one blaming the other. What can I do? I need my payments to reflect to my credit and I'm very disappointed with the outcome of this whole situation.
14 ANSWERS
I must be missing something here. Your attorney had no choice about whether or not to include your mortgage in your chapter 7. When you file bankruptcy, you must list all of your debts and all of your assets. (Your mortgage is a debt and your home is an asset.) Keeping your home is a separate issue. Your attorney should have discussed the pro's and con's of filing a reaffirmation agreement with the mortgage company. I would need more information to comment any further on how likely it was that you would be able to keep your home. Normally, if you are current on your payments, simply continuing to pay on time will enable you to remain in the home. As far as the credit report is concerned, I would be willing to bet the bank that it wasn't your attorney who reporting the bankruptcy to the credit bureau.
Answered on Jun 28th, 2013 at 8:38 AM
Unfortunately, once your bankruptcy closes there's nothing you can do. The mortgage is discharge and that cannot be refinanced.
Answered on Jun 27th, 2013 at 8:05 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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There's nothing you can do. If you want to refinance later, you can ask for your payment history from the mortgagee.
Answered on Jun 27th, 2013 at 5:53 PM
So you think that you can say "leave out my mortgage" and your bankruptcy attorney is going to do what you want because you know what's right? You don't! Federal law requires that all your debts be listed, even debts you wish to continue to pay. Keep reading & you will see your Statement of Intention provides that you intend to retain your mortgage debt. Had your attorney failed to list your mortgage, you could be charged with a federal crime & lose your right to eliminate your debts in bankruptcy. Stop trying to second guess your own lawyer & stop listening to the uneducated people that work at your mortgage company.
Answered on Jun 27th, 2013 at 12:21 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Most likely you did not reaffirm the mortgage debt and the lender does not give you credit for making future payments on the debt on the credit report to punish you for not reaffirming. Most likely the debt was not reaffirmed as you owed more on the home than it was worth. Consider yourself lucky as you continue to keep the home without owing the debt. Your disappointment "with the outcome of this whole situation" is shortsighted.
Answered on Jun 27th, 2013 at 12:19 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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When you file a bankruptcy petition, all of your debts (including your mortgage) are required to be listed. There is no choice.
Answered on Jun 27th, 2013 at 10:10 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Under the bankruptcy code EVERY debt and EVERY asset must be included in your bankruptcy. A debtor is not permitted to exclude a debt or asset because that constitutes a preference and fraud. Your attorney acted appropriately by including the debt in the bankruptcy. Additionally, you reviewed and signed those documents and would have seen the mortgage listed under the secured debts. Your mortgage must be included in the bankruptcy. However, on the form of intention you would have indicated that you intended to retain your home and were willing to redeem or reaffirm the debt. After a discharge, debts included are not permitted to report on your credit. The only option to restore that would a reaffirmation or redemption of the mortgage. This is just part of the bankruptcy process and not something to blame your attorney or the mortgage company. There are steps you can take to have the mortgage reported, but you have to take those steps yourself.
Answered on Jun 27th, 2013 at 9:45 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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Not completing a reaffirmation agreement does not mean you can't keep your home. It means you don't have any personal responsibility on the debt which is why you are not getting the reporting your looking for on your credit report. Option 1: You could try to reopen your case and set aside your discharge to file a reaffirmation agreement. The judge will likely deny the request as it doesn't effect your ability to keep your home. If the home has no equity it might be even more difficult to get granted. Option 2: You could request your payment history once a year on the home. You could dispute the payments with the credit bureaus and provide the payment history you were provided indicating your payments.
Answered on Jun 26th, 2013 at 10:46 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You have to list all creditors, debts, income and expenses in a bankruptcy case. You need to keep paying the mortgage on time and it should be reflected on your credit report.
Answered on Jun 26th, 2013 at 10:43 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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It is generally a bad idea to reaffirm a mortgage because you are unnecessarily giving the lender the right to sue you if you ever default. In any case, a debt cannot be reaffirmed after the discharge is granted by the court. You should re-establish your credit history through some other form of credit.
Answered on Jun 26th, 2013 at 10:42 PM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
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Sisson & Kachinsky Law Offices
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Tell the trustee that you want to keep the home.
Answered on Jun 26th, 2013 at 10:39 PM
Deborah F. Bowinski
You are REQUIRED to include every debt that you owe when you file bankruptcy there is no such thing as picking and choosing. It is very likely that the only way to get the lender to report to the credit bureaus would be to sign a reaffirmation agreement, which would be a VERY BAD IDEA. There is no need, and no good reason to sign such an agreement for a mortgage loan. Your lender will accept and apply your payments and you will be able to keep your home as things are. If you ever need to demonstrate your payment history (if you apply for a new loan for any purpose) you can request a payment history from the lender. Most loan officers and underwriters are quite familiar with your type of situation and know how to handle it.
Answered on Jun 26th, 2013 at 10:35 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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Keeping your home and doing what you say you want are two different things. You can keep your house. Keep making the payments. You absolutely MUST include the mortgage in your case. What you indicate you wanted is to"reaffirm" the debt where you are liable on the debt as if you did not file bankruptcy. Most banks do NOT ask you to reaffirm the mortgage debt. Maybe after all the litigation they don't want the debts reaffirmed? I never encourage my clients to reaffirm mortgage debt thereby giving them the opportunity to walk away from the property without any mortgage debt to worry over. Some of my client did this a few years later. Yes, your payments won't reflect on your credit score, but there are other ways to boost your credit.
Answered on Jun 26th, 2013 at 10:20 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The payments will not reflect on the credit report, this is not your attorney's fault. It is a choice of the lender. You can obtain an accounting from the lender to show that you have been making timely payments.
Answered on Jun 26th, 2013 at 8:25 PM