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Foreclosure after bankruptcy discharge

Our [url=]Chapter 7 bankruptcy[/url] has been discharged since July 2009. I am in Florida. I don't know if your answers might be different depending on which state is involved.

One area in the papers filed with the Courts is a place to mark Exempt or non-Exempt relating to our home. Our lawyer advised us to mark Exempt, and that we intend to reaffirm the debt and also retain our property. We've never received a reaffirmation letter.

Does this literally mean that our home was not a part of our bankruptcy since Exempt was marked? Our credit report shows a $0 marked next to mortgage. That seems to mean that our home was included in the bankruptcy, correct? If the amount of the note/loan was wiped off the books down to $0 and we've never signed any reaffirmation agreements can the lender sue us for any part of what the mortgage balance was when we filed bankruptcy?

We had to close our business which supported us. We are unemployed. Because of our situation we're considering walking away from our home.
There are no delinquent payments on the mortgage. I understand
that if we needed to walk away from our home this would be reflected in the credit reports as FORECLOSED.

Considering our situation where Exempt was chosen but our credit report shows a $0 balance will we still be liable to the bank for any deficiency after the sale of our home after foreclosure?

Really, what's worrying me is the conflict over court petition for bankruptcy showing we checked Exempt regarding our home and now needing to walk away from our home.

Appreciate your response very much.

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Nidaba,

You had to list the property in your bankruptcy filing though you declared it as exempt. Being exempt only means that you'll be able to retain the property and the trustee won't be able to sell off the property. As you haven't signed the reaffirmation agreement, the lender won't be able to come after you for the deficient balance resulting from the property sale.


Like | Dislike | Share | Posted: Fri, 10/22/2010 - 21:11

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)


Thank you very, very much for your answer to my questions. Your answer has made me feel so much better. I couldn't understand why our attorney checked off EXEMPT. Now I really get it.

Thanks again

Like | Dislike | Share | Posted: Sat, 10/23/2010 - 13:56 | Post subject:

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