Is this wrong? Advice needed on house in 7!

[inseriousdebt]

We are so confused by this...we just converted to a Ch. 7 this last month because our mortgage payments are going up and we just had a baby. We are giving up our house, and the last payments we were able to make were in October. On our petition..on the intentions page..it states that "debt will be reaffirmed puruant to 11 U.S.C. 524. Can someone explain this to me? I am assuming this was checked so that we could include the new payments on our means test and Sch. J (we were right on the line for passing the means test--but negative on Sch. J).

We are a no asset case---341 in January. Any advice is appreciated.

[DontBother]

Have you asked your attorney about it?

[lrprn]

On our petition..on the intentions page..it states that "debt will be reaffirmed puruant to 11 U.S.C. 524.

It looks like your lawyer indicated that you planned to reaffirm at least one of your asset loans - from the information you provided I can't tell which one.

After you filed, do you remember signing reaffirmation forms for your lawyer that listed your mortgage company?

If you signed reaffirmation forms for your mortgage and the mortgage company also signed them and filed them with the bk court, then you could end up with no house but owing everything on the loan anyway.

However often bk lawyers indicate that you "intend" to reaffirm to lessen the chances for a creditor objection, but then never file the reaffirmation papers.

Talk to your lawyer immediately to find out where you stand.

[inseriousdebt]

Two mortgages

We have two mortgages....two of which our attorney said to sign no papers for......we have no equity in our home....we are upside down on the home at this point. Our attorney's office explained it as something that is going to save our butt because right now our payments are so high--we will pass the means test ..and sch. J will look very negative?

[lrprn]

The only person who is very familiar with your case and can answer your questions with certainty is your lawyer. Call him/her in the morning first thing and find out what's up.