I had 2 homes. The one was an investment property which I let go in the bankruptcy. The second i kept and am living in. I foresee no problems keeping up with payments. Should i go through the hassle of reopening the bankruptcy to reaffirm this mortgage? Only reason i am considering this is because i was told that my payments will not be reported to the credit bureaus to improve my credit score. I am also researching getting a secured credit card. I have read many differing opinions but none really applied to my situation. Thank you for any information.
Chapter 7 Bankruptcy Attorney
One of our trustees here in Cleveland opens every single examination with these words - don't let anyone tell you that reaffirmation will help you re build your credit, it just is not true.
To make sure you are getting credit for the mortgage payments, you contact the credit reporting agencies, Experian, Equifax and Tranunion. Do this in writing an include the annual statement your mortgage company sends you, showing the payments you made. The credit reporting agencies have a duty to accurately report the payments as being made. That way, you get the best of both worlds. You get credit for making the payments, but if you need to abandon the property, you can do so without worrying about getting sued over the deficiency (because you did not sign the reaffirmation)
I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.
You "can't" reopen a bankruptcy to reaffirm. Reaffirmation agreements must be entered prior to discharge, period. So, the issue is moot.
Let me be blunt, you would be an idiot to reaffirm. Your credit will recover. Also, especially in the context of obtaining another mortgage, there is a product called "rapid rescore" which re-scores your credit as if you had been making your mortgage payments.
1. You can't reaffirm at this point anyway...and
2. You don't need to.
Reaffirmation can only be done before a discharge, so that option is not available, and neither is reopening a case for such purpose, because the facts you describe have no benefit to unsecured creditors, nor any other compelling reason.
There are many benefits of not reaffirming, and differences of opinion as to which strategy is of greater benefit. Since there is no option at this point, just work with the benefits of not reaffirming.
General legal advice is offered for educational purposes only. A consultation with a qualified attorney is required to determine specific legal advice as to your situation and applicable law. We are a debt relief agency and we help people file for relief under the bankruptcy laws.
There are far less risky ways to rebuild your credit after bankruptcy than by reaffirming a mortgage. Most bankruptcy judges won't approve of any mortgage reaffirmations anyway. I am posting a link to a list of my legal guides which contains a 10 part series on rebuilding credit after bankruptcy. You will have to scroll past the articles that don't interest you to find the ones that do. Hope this perspective helps!