Chapter 7 relationship with current secured debt

[Broke 2]

A couple of suprises post 341 meeting. My mortgage and 2nd mortgage upon which I've been current and basicly on time for throughout the entire length of the loan....is now included in my BK? My statements say that a BK is filed in connection with this account. Now my understanding was that the Chapter 7 was the unsecured debt? Although all debts secured and un secured had to be listed on the petition. My chapter 7 was done to rid myself of my high CC bills and unsecured loans. I didnt realize that it would affect the secured items listed?

So my question is...Do all secured loans mortagage,2nd mortgage,car loans need to be reaffirmed?

If so do the billing statements of the mortgages leave the default division after reafirmation? So that its not on the statements?

I filed individually my spouse did not...we dont have any joint unsecured credit...but the mortgages are in both names.....will this affect her credit?

I thought that a non filing spouse of a chapter 7 unsecured debt would not be affected?

Also just a general question ....what is considered high income for a family of 2 working adults?

Thanks for the replies.

[alice0427]

Are you filing pro se?

[edwards2]

All of your debts have to be included whether you reaffirm them or not. Chapter 7 includes ALL debts; not just unsecured debt. Your credit report will reflect a BK regardless. We reaffirmed our mortgage but the consensus of this board and others is NOT to. I think it is because if you reaffirm and they foreclosure on you for not paying you will be responsible for the balance wheresas if you dont reaffirm you just walk away. As for your wife's name on the mortgate - whether she files or not her name is still listed as a joint debtor. If her name is not on the unsecured debt that may be a different matter. High income really depends on where you live. My husband and I make $100k together in Tennessee and it was considered high income. Of course we had HIGH debt too.

[AAAArt]

Do you have equity in your house? A re-affirmation not only protects them, it protects you as well. You can just keep making payments and they can't evict you and have to accept them, but miss one or be late and all kind of bad things can happen.
I have never felt that the general consensus of the Forum was to "not re-affirm" Each case is unique. We are re-affirming our cars, because even though we are upside-down acc. to KBB Trade-in value, we are right at real value (in my opinion) an my loan is at 0% and my wife's is at 3.95%. Mine is a 2003 and hers is a 2004, but we purchased them both on the same day a little over two years ago on 5 year notes. We rent, so didn't have to deal with mortgage. CC's are another story. Emotional and false sense of security reasons, but rarely a logical reason to re-affirm.
Yes, this will affect your wife's credit score most of the time.
The traditional logic is that one of the main reasons to file Bk. is to protect your home. That is why there are homestead exemptions. You sound like you want to have the ability to walk away from it in the future. If your first and second mortgages are that onerous, why not surrender now? If yo do not re-affirm, normally the mortgage holder or other lender will not report your payments to the CRA's and you will not be building up your scores.
Art

[AAAArt]

Went back and found the other points to which I thought I might be able to add insight on.
Unsecured debt on one party does not affect the other. Either unsecured or secured debt in both names afffects both...as do taxes filed jointly.
Every area is different in judging "high income" Around here (Central IL), I was told by one atty. that it was $50,000. An experienced atty. is the only to get an educated guess and some trustees are already moving closer to the new law and IRS guidelines. Art

[Broke 2]

I guess I did not fully understand the Chapter 7 when I filed. In short My spouse whom has excellent credit (700's)will be affected by my BK since she is a co debtor on the mortgage. I thought that the Ch 7 was just unsecured debt and Ch 13 was for secured and unsecured debt. We have had our current home since 1992 and have never missed a payment...probably paid the late fee 3-4 times. But I pay the mortagage and always have. So when I filed I had no idea it would affect the mortgage. Worse part is I have not told her about my BK. It was all my CC and personal loans that I was interested in getting rid of, total about 42k. Then to make things worse she is in the process of purchasing her dream home.. she makes about 85K and has been approved for 500k...mainly due to her excellent credit. She thinks I wont co sign anything because I think its too much...it is really. I guess I'll be reafirming current mortgage and work on repairing the credit.

[AAAArt]

I really feel for you. The anxiety of filing is great enough, w/o having to try to keep it a secret.
BTW, you cannot keep it a secret any longer. You MUST tell her ASAP. You cannot go out and buy a $500,000 house during or just after filing. Plus they WILL pull a credit report and it WILL show. Can you even begin to imagine her embarrassment and anger when she finds out about it from the bank???
I doubt that she would qualify for a home that expensive on her income alone. Even if you only had to finance $400,000 and taxes are night too high, and you could get a mortgage at 4%...Even if all of those things happened, your payts on mortgage, taxes and ins. would be around 35% of her gross income and prob. closer to 50% of her take home.
Yes, you can prob. expect her to be p*ssed as hell and for things to be very unpleasant for a while, but our spouses, (particularly wives) have a way of coming around and wanting to support us. Be prepared for the question, "How the Hell did this happen?" and have the numbers/figures to show her.
You're prob.wondering if your marriage will survive this. Or else you would have told her sooner. Know this...there is a chance that it won't, but odds are better that it will and will be stronger in the future.
Best wishes....BUT, You HAVE to tell her!!! Art