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I FILED CHAPTER 7, 2 YEARS AGO, MY MORTGAGE WAS RE-AFFIRMED , STOPPED MAKING PAYMENTS AND VACATED THE HOUSE CAN THE BANK SUE ?

Wilmington, DE |

AFTER MY DIVORCE AND A JOB LOSS I FILED CHAPTER 7 IN DELAWARE BUT RE-AFFIRMED MY MORTGAGE, BUT THEN COULDN'T STAY CURRENT IN MAKING PAYMENTS SO I STOPPED AND VACATED THE PREMISES MY LAWYER TOLD ME NO FURTHER ACTION WAS NEEDED AND THAT THE DEBT IS AUTOMATICALLY INCLUDED IN BK , I JUST RECEIVED A COURT NOTICE THAT THE BANK IS SUING ME, MY LAWYER RELOCATED OUT OF STATE AND I AM CLUELESS. HOW CAN I PROCEED WITH THIS? IS THIS DEBT DISCHARGEABLE IN MY OLD BK7?

Attorney Answers 3


  1. Your old bankruptcy is done.
    If you did reaffirm then you are stuck with any deficiency in this foreclosure.
    When you reaffirmed the mortgage, your lawyer was correct, no further action was needed.
    The foreclosure is a new matter. It is not a continuation of your banruptcy. That lawyer is no longer your lawyer.
    You need to hire a mortgage foreclosure attorney to represent you in this. The mortgage company may not have done everything properly.
    It's a long shot but worth it. Read the foreclosure papers and see if they are asking for a personal deficiency. It's possible that they may have a screwed up and forgot to ask.
    It's also possible you never did properly reaffirm the mortgage.


  2. FIrst, please don't use ALL CAPS, it is rude and harder to read.

    If you reaffirmed the debt, it is as if you never filed bankruptcy, vis-a-vis the reaffirmed debt.

    As Ray points out, there may be an issue of whether you actually reaffirmed. Get with a bankruptcy attorney, PAY for the consultation so that the attorney can review your prior filing to confirm the status of the mortgage debt. If the debt was properly reaffirmed, then assuming DE allows deficiencies, you are stuck with it. Sorry.


  3. If the court approved the reaffirmation of the mortgage, the bank can sue you to collect the difference between the sale price and the loan balance. Many bankruptcy judge's won't approve of these reaffirmations for just this reason. Check the bankruptcy file at the link below to find out for sure whether the judge did okay the reaffirmation. Otherwise, in many states, foreclosure does involve a lawsuit & a lawsuit simply to foreclose is allowed once the bankruptcy is closed. Hope this perspective helps!

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