debtor to retain collateral and continue to make regular payments

[baker]

My wife's C7 had this as her intention when she filed alone... We never heard a word from either mortgage company and the case has now been discharged and closed. The question is, what now ??? We have never fallen off on our payments and are current on both loans. When I call to one company it still sends us to the bankruptcy department. Should I have our lawyer call them to get us back to the good side ???

[keepmine]

If she never reaffirmed the mortgage, she'll likely need to deal with the bk dept. They won't be able to initiate contact with you since, that could be construed as collection activity.

[Minnymouth]

Okay,
Evidently your wife did not file reaffirm papers with the Court stating that she reaffirmed on the mortgages........

So, the debt is discharged in the bankrutpcy.... (that is why they send you to the bankruptcy department when you inquire)...

NOW, since you are discharged and your case is closed........ IF YOU ARE KEEPING YOUR HOME..... ALL PAYMENTS MUST BE ON TIME....... no lates or deliquents.... (or they can start foreclosure proceedings almost immediately)... As long as your payments are current and timely, you can continue purchasing your home as you did before.

If you decide to surrender your home in the future (times get rough)..... you can call them surrender it and owe no more one anything... (because it was discharged in the bankruptcy)....

Be sure your bankruptcy papers and credit report state "included in bankruptcy" - this is very important that it does!!!

[baker]

So you're saying that even though we have continued to make the payments the debt (the balance on the mortgages) the mortgage debt has been officially discharged ??? Even though I am on the mortgages and did not file...???

So legally we could just walk away from the house and give it back to them with no further actions being taken ??? Someone please explain this in total...

[Minnymouth]

Okay, do I understand that only your wife filed, not you????

If you did not file then YOU ARE RESPONSIBLE FOR THE MORTGAGE NOW...... if your name is also on the mortgage.....

Since you did not file BK - NO YOU CANNOT WALK AWAY WITHOUT OWEING ANYTHING...

Is both your names on the mortgage????

Don't get excited here until I get some more info on this from you.......

[keepmine]

So legally we could just walk away from the house and give it back to them with no further actions being taken ??? Someone please explain this in total...

Not much to explain. If you didn't reaffirm, you have no liability for any deficiency balance.

[baker]

Okay, do I understand that only your wife filed, not you????

If you did not file then YOU ARE RESPONSIBLE FOR THE MORTGAGE NOW...... if your name is also on the mortgage.....

Since you did not file BK - NO YOU CANNOT WALK AWAY WITHOUT OWEING ANYTHING...

Is both your names on the mortgage????

Don't get excited here until I get some more info on this from you.......

No, I did not file, but both of our names are on the mortgages (2) ... Where does that leave us...???

[Minnymouth]

If both names are on the mortgage and only one files bankrtupcy then the mortgage company will go after the party that did not file bankruptcy to justify the debt....... that makes you still responsible for it........

[keepmine]

The debt is discharged to her but, you are still on the hook since you never filed.
Here's a decent article about reaffirmations and bk.

http://www.wolffirm.com/publications/54.htm

[Minnymouth]

Sorry, if both of you had filed BK, you could have surrendered the home and owed nothing else, or kept it and made payments for a while, then decided to surrender and still owed nothing more......

But since you did not file BK........ the debt reverts back to you just like it originally did.... so if you tried to walk away now.... you would have to pay any balance owed on it after a sale etc......

Hope this helps explain.....

(hope I haven't confused you)....

[baker]

Sorry, if both of you had filed BK, you could have surrendered the home and owed nothing else, or kept it and made payments for a while, then decided to surrender and still owed nothing more......

But since you did not file BK........ the debt reverts back to you just like it originally did.... so if you tried to walk away now.... you would have to pay any balance owed on it after a sale etc......

Hope this helps explain.....

(hope I haven't confused you)....

So what would've happened if I had filed as well and continued making payments then at some point in the future sold the property ???

[keepmine]

Had you filed as well, you would be on the same playin field as your wife. No responsibility for a deficiency balance should you walk away.
If there is any equity in the house, you two can sell and keep any proceeds beyond what it takes to pay the lein holder.