While confirming that you did in fact reaffirm both these mortgage loans in your prior Ch 7 is key to deciding what to do (I cannot imagine any good reason to reaffirm a debt on real estate, let alone a second mortgage), consider this possibility - You may be eligible for a discharge in a Chapter 13, as it is now more than 4 years from the date your original Ch 7 was filed. The bankruptcy code looks at the filing dates between cases to determine if a discharge in a new filing is available. In your Ch 13 you might indicate an intent to surrender the home, and you may even have already moved into something more affordable prior to filing. You also might consider a lien strip action in a Ch 13, which would allow you to completely eliminate the 2nd mortgage through the Ch 13. All these options need to be reviewed with an experienced bankruptcy attorney.
Allan M. Darish Fenton Bankruptcy Attorney
Posted about 14 years ago.
While confirming that you did in fact reaffirm both these mortgage loans in your prior Ch 7 is key to deciding what to do (I cannot imagine any good reason to reaffirm a debt on real estate, let alone a second mortgage), consider this possibility - You may be eligible for a discharge in a Chapter 13, as it is now more than 4 years from the date your original Ch 7 was filed. The bankruptcy code looks at the filing dates between cases to determine if a discharge in a new filing is available. In your Ch 13 you might indicate an intent to surrender the home, and you may even have already moved into something more affordable prior to filing. You also might consider a lien strip action in a Ch 13, which would allow you to completely eliminate the 2nd mortgage through the Ch 13. All these options need to be reviewed with an experienced bankruptcy attorney.