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Debt Reaffirmation after bankruptcy - What does it mean?

Posted on: 08th May, 2008 06:08 am
we filed ch. 13 bk and it was discharged 8/07. i am delinquent on our second mortgage. i just pulled our credit report and it states under the second mortgage creditor: reaffirmation of debt. what does this mean? are they foreclosing?
Hi duggger,

When you reaffirm a loan while you are in bankruptcy, you actually promise to keep making payments on time and your lender promises to not foreclose on your property as long as you are current. However, a reaffirmation is not always necessary. Since you have been making the payments on time, you do not have to worry about the reaffirmation. Once you pay off the RV or the car, you no longer owe the lender any debt. Then you can own the car or the RV free and clear. But, when you pay off the loans, make sure you receive documents from the lenders for satisfaction of the lien.
Posted on: 25th Jan, 2010 11:09 pm
I dont have atty and I did my bankruptcy pro say put a paper in the there about reaffirming the debt for thehouse and car now do I call them to send me something else or do I get it from he courts to do this?
Posted on: 06th Feb, 2010 04:40 pm
whydo the trustee take your tax refund when you file bankruptcy. how can you get to keep it>am insolvent and have no resouces.
Posted on: 06th Feb, 2010 04:47 pm
To Shirley,

If you want to reaffirm the mortgage and the car loan, you will have to file certain papers and inform the bankruptcy judge about your intention to reaffirm the loans. It is better to consult a bankruptcy attorney in this regard. However, if you do not want to consult an attorney, you can talk to your respective lenders and tell them that you want to reaffirm the loans and continue making payments. They should be able to tell you what you can do to reaffirm the loans.

To David,

If you are expecting a tax refund while in bankruptcy, you should inform the bankruptcy trustee about it. The trustee takes the tax refund to pay off your creditors. But there are exemptions which you can avail to protect this money. Different states allow different amount of exemptions. For instance, in Illinois a debtor can protect his tax refund if it is not more than $4000. Check with your bankruptcy attorney what exemptions you are entitled to in your state.
Posted on: 11th Feb, 2010 02:11 am
Hi, I went trough Chap. 7 bankruptcy earlier this year. Did not Reafirm either my first or second mortgages (on advice of my attorney). Have been making both loan payments and have worked out a modification with the first mortgage holder, which I understand will now not be covered by the Chap. 7 as it is considered a new loan.
The second (prime equity) I have never received any bills for, or notifications about but have just made a payment as before every month. What would happen if I ceased making these payments alltogether? Can the 2nd mortgage holder forclose on me whilst I am current on my first mortgage?
Thank you.
Posted on: 03rd Sep, 2010 04:56 pm
Hi Caroline!

Welcome to forums!

You're not personally liable for the loan as it has been discharged in your bankruptcy filing. However, the lender still holds the lien on the property. Thus, he can foreclose it if he doesn't receive his payments.

Sussane
Posted on: 04th Sep, 2010 12:12 am
I filed for bankruptcy in 2004 and had a mobile home loan reaffirmed in the bankruptcy. My question is if I let them repossess this home will they be able to garnish my wages for the balance of the loan?
Posted on: 20th Oct, 2010 06:04 am
As you've reaffirmed the mortgage, the lender can garnish your wages in order to recover the balance amount of the mortgage. If you had not reaffirmed the mortgage, then the lender could not have garnished your wages.
Posted on: 21st Oct, 2010 03:13 am
I want to lower my mortgage payments with help from my bank. I declared bankruptcy 2 yrs ago, have not been late and I am not late now. How do I go about reaffirmation so that the bank will work with me?
Posted on: 09th Nov, 2010 04:34 pm
Hi Anna,

If the bankruptcy filing has been already discharged, then you won't be able to reaffirm the mortgage now. You will have to reopen the bankruptcy filing and then reaffirm the loan.

Thanks
Posted on: 10th Nov, 2010 01:45 am
I filed chapter 7 and went to court in nov I told my attorney and everyone at the hearing that I planned to keep my car and my home. I have been trying to get BofA to complete my modification on my secd and they still have not. The crazy part is you have to be deliquent before they look into helping you. Now I ma deliquent and they are dragging their feet. I called my attorney and the legal assistant told me they dont see any reaffirmations from any of my debtors that I planned on keeping. Then he told me that BofA usually dont send them anymore and that they BofA wont try and foreclose because Im current on my first. I just dont know what is true. Do I have to initiate the reaffirmation or does this mean the debtors dont want my as a customer and rather have the property back?
Posted on: 15th Dec, 2010 01:57 pm
Hi Thomas!

Welcome to forums!

It is true that unless you're delinquent on your mortgage payments, the lender will not consider your request for a loan modification. If you reaffirm your mortgage, you will be able to get a loan modification. Unless you reaffirm the mortgage, you won't be personally liable for the mortgage dues and thus, the lender won't consider your request.

Feel free to ask if you've further queries.

Sussane
Posted on: 15th Dec, 2010 10:01 pm
we indicated in our bankrupsey papers when the attorney filed them for us that we wanted to reaffirm our mortgage. it did not happen. the mortgagee is saying the attorney was suppose to draw up the reaffirmation papers and send them to us the attorney is saying the mortgagee was suppose to do that. who is correct?
Posted on: 05th Apr, 2011 02:31 pm
Welcome kasee,

As far as I know, it is your bankruptcy attorney who should have drafted the reaffirmation agreement.
Posted on: 06th Apr, 2011 12:14 am
I filed 7 in 2008. I had reaffirmed my car loan and notified the Mortgage Company on rthe filing.. They never requested a reaffirmation and so there was never a reaffirmation on the mtg.. I was never late on any payments and I want to re-fi the property to get a lower interest rate.. I was told that in order to do this I need a reaffirmation agreement. I call the attorney that did the filing and asked him to do one. He said that you can't reaffirm a discharged debt. Now what do I do? Do I need to have the mtg company re write the mortgage before i can apply for a new loan?
Posted on: 01st May, 2012 01:52 pm
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