almost one year since discharge but..

[helpsoneeded]

Hi I am almost one year since my discharge out of bankruptcy. We did 5 years and a chapter 13. I am applying for a loan for a work vehicle but I am being told that my mortgage and second mortgage is not being reported. I did pay them separate from the payment plan. Does anyone know why this is? Thanks

[jange]

My home equity stopped reporting about 1/2 way through. I am hoping they start reporting once I get my discharge. I would try contacting them.

[LadyInTheRed]

Many mortgage companies stop reporting to the credit bureaus when a BK is filed to avoid being accused of violating the automatic stay. You may be able to get them to start reporting again, but no creditor is required to report activity on your account. If this is an issue for the auto loan, maybe the lender will accept evidence of timely mortgage payments.

[dmc-2008]

Good to know! Sorry that happened to you though!

[spidge]

Just don't reaffirm the mortgage just to get them to report then buy a car. Now I don't know all the rules in this stuff but can you incorporate and buy the vehicle then?

[LadyInTheRed]

Just don't reaffirm the mortgage just to get them to report then buy a car. Now I don't know all the rules in this stuff but can you incorporate and buy the vehicle then?

A debt cannot be reaffirmed after discharge. To be back on the hook, the OP would have to refinance. If he can't get a loan as an individual, creating a corporation would not help. The lender won't lend to a new corporation without a personal guaranty from somebody who could qualify for the loan themselves.

[spidge]

A debt cannot be reaffirmed after discharge. To be back on the hook, the OP would have to refinance. If he can't get a loan as an individual, creating a corporation would not help. The lender won't lend to a new corporation without a personal guaranty from somebody who could qualify for the loan themselves.

Your saying the mortgage cannot be reaffirmed after the BK?

[TXskyblue]

Your saying the mortgage cannot be reaffirmed after the BK?

That is my understanding. If you want to be liable for the mortgage, you must sign a new mortgage. It is a completely new mortgage, and has nothing to do with the discharged mortgage of BK.

My credit union was reporting on my 1st and 2nd mortgage like clockwork. Then I made the mistake of paying off my 2nd mortgage. I guess that got me reviewed because now they won't report the 1st mortgage.

Lenders are fickle.

[LadyInTheRed]

Your saying the mortgage cannot be reaffirmed after the BK?

Yes. To reaffirm a debt, the lender and debtor must sign a reaffirmation agreement and file it with the court before discharge. The debtor's attorney must sign an affidavit stating, among other things, that a reaffirmation is not an undue hardship for the debtor. If the debtor is not represented by an attorney with respect to the agreement, then the judge must approve the reaffirmation agreement as not an undue hardship and in the best interest of the debtor. The debtor can rescind a reaffirmation agreement 60 days after it is filed, or at any time before discharge, whichever is later. This is set forth in 11 USC Sec 524(c): http://www.law.cornell.edu/uscode/text/11/524