Home > Research Legal Advice > Bankruptcy / Chapter 7 > I nvr reaffirmed 1st or 2nd mortgage after ch 7 bk. If the home goes in...
Asked almost 2 years ago - Worcester, MA
FlagAlso, since I am no longer liable for the debt, can i be sued for deficiency?
This is the good thing about not having reaffirmed your mortgage and/or home equity loan. The debt has been discharged. If you stop paying on the obligation, a foreclosure is llikely. However, in that your obligation was discharged in the bankruptcy, there is no deficiency for them to pursue.
The foreclosure is likely to show on the credit report. The chapter 7 stays on the credit report for up to 10 years. There are many ways to rebuild credit after foreclosure and bankruptcy and so I encourage you to focus on that.
You cannot be sued for a deficiency on a foreclosure after a bankruptcy discharge, and if you are, it is a mistake & the bankruptcy is your defense.
Whether your foreclosure will appear on your credit report is largely a matter of luck. If the foreclosure is done through a judicial proceeding, it probably will show up, as the foreclosure is a public record. If the foreclosure takes place by way of a nonjudicial proceeding, it is less likely to show on your credit report.
Hope this perspective helps!
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