This simple answer is to simply call the lawyer who handled the bankruptcy. From what you describe, it sounds like you did not reaffirm on the mortgage (which is normal). If you did, the bank would probably not tell you the disclaimer about not attempting to collect a debt.
Jun 21, 2013 · Federal law requires that any reaffirmation be submitted before the discharge is entered. Once the discharge papers are issued, a reaffirmation is no longer possible. If the loan is a mortgage, it is unlikely that the bankruptcy court would have approved a reaffirmation for you anyway, so your attorney may not be to blame.
Jun 06, 2011 · The reaffirmation agreement contains places for the signatures of the bank, your lawyer, and you. Signing the reaffirmation agreement results in the debt surviving the chapter 7 bankruptcy discharge, and your liability for the reaffirmed debt continues on,unaffected by the discharge of debts. The problem is that your lawyer might refuse to sign it. Yes, you read that …
Signing this agreement results in the loan surviving your bankruptcy discharge, and your liability for the reaffirmed debt continuing on. This is a big step, and the bankruptcy code seeks to be sure that this is the right thing for you. Part of this is a determination that reaffirming the debt will not create a financial hardship.
This particular person may have been helped by the fact that the debt wasn’t reaffirmed since reaffirmed or not, a car can be repossessed if the loan payments fall behind. However if the debt wasn’t reaffirmed, then all the creditor can do is pick up the car and sell it and this debtor could not be sued for any balance owed.
You can choose to keep the car and continue paying without reaffirming. You take your chances that the lender will repossess the car, but you also keep the benefits of the bankruptcy discharge.
When debt is discharged in bankruptcy, the bankruptcy petitioner is no longer personally responsible for that debt. Therefore, if a homeowner files bankruptcy, does not reaffirm the debt, and receives the discharge, he or she is no longer liable for the outstanding balance and the mortgage.Jan 7, 2020
If the Court denies the reaffirmation agreement, you are in technical default again. This is part of the trade‐off between Chapters 7 and 13. In exchange for a quick, efficient, inexpensive discharge of your debts, you give up control over the actions of creditors.Jun 9, 2021
This is called the 341(a) hearing or “meeting of the creditors.” After that meeting, you have 45 days to sign a reaffirmation agreement or return the secured property to the creditor. If you fail to do either of these things, you may lose important legal rights and the property.
You do NOT have to Reaffirm to Refinance The truth is that you do NOT have to reaffirm your loan to refinance. There is no law that says anything like that. The hurdle is not a law, it is just the bank's policy. They may have chosen not to offer to refinance to people who chose not to reaffirm.Jun 7, 2018
Secured debts like mortgages are still debts and therefore can be discharged through bankruptcy. But, the only way to keep the item securing the debt is to continue to pay for them. Reaffirmation agreements for mortgages are possible, but not necessary. They are, however, always subject to court approval.Apr 15, 2021
Reaffirming Helps Rebuild Your Credit So timely payments won't help you establish a good credit history after bankruptcy. If you reaffirm the loan, your lender will continue reporting payments.
Advantages to Reaffirmation of Debt Reaffirming a debt allows you to keep the property securing the debt, which can be a real advantage in some cases. It also allows you to avoid having to come up with a lump-sum payment to keep the property.
Your question is asking about "presumption of undue hardship" which is a box on the standard reaffirmation agreement. If you check this box, the judge will set a hearing to determine whether or not you have the financial means to reaffirm a certain debt.
No creditor can make you reaffirm a debt. This is because a reaffirmation goes against the most basic upside of filing bankruptcy: the fresh start. You cannot be sent to collections, sued, or garnished on a debt that was discharged in bankruptcy.
When making an offer on a reaffirmation agreement, ask the lender to reduce the loan balance and the interest rate. Remember, this is a negotiation. You can expect the lender to come back with a counter offer. So, make your starting offer lower than the amount you are really willing to pay.Nov 3, 2014
Reaffirming a debt informs the lender that you intend to continue to pay the loan. Generally, the lender will continue to report the loan and all payments made on that loan to the credit reporting agencies, which may help improve your credit score after bankruptcy, provided timely payments are made on the loan.Dec 15, 2018
If the reaffirmation isn’t filed, the car might be picked up even if the debt isn’t in default but in this case the car lender didn’t do this . The lender allowed the borrower to continue paying. The message appeared to be from someone who had fallen behind on his car payments 2 years after filing for bankruptcy.
Many courts have ruled that if a car hasn’t been reaffirmed, then the creditor has the right to repossess and sell the car , but if a lender allows a debtor to keep and pay for the car, then the debtor is able to have their car without the risk if something happens down the road, pun intended.
The message appeared to be from someone who had fallen behind on his car payments 2 years after filing for bankruptcy. This particular person may have been helped by the fact that the debt wasn’t reaffirmed since reaffirmed or not, a car can be repossessed if the loan payments fall behind.