My Chapter 7 was discharged in August 2010, my Credit Report states that I included my house, which we did not.

Asked almost 4 years ago - Grovetown, GA

I signed a reaffirmation agreement with my Attorney in GA and was told all was good. Chase informed me today that we did not reaffirm the house and since our Chapter 7 had already been discharged, we cannot reaffirm with Chase. My wife and I are planning to move to TX for better VA health care since I was wounded in Iraq. I want to fix my Credit, but it seems I am hitting walls at every turn. If Chase is going to continue to report that I included them in the Chapter 7, then I may as well stop paying on this house in GA and save the $1,700 monthly payment for another home in TX. Is there a law in the Bankruptcy that if a debtor includes a collector in a Chapter, then the collector is not allowed to accept any payments? I need guidance, please help this old vet, thanks you.

Rob

Attorney answers (4)

  1. Glen Edward Ashman

    Pro

    Contributor Level 20

    Answered . Go back to your lawyer and talk with him. For some reason you do not understand what you filed.

    Your house had to be included in your case, no matter your intent. Failure to do so could be a crime that would result in denial of discharge and you going to jail.

    If you did not reaffirm the debt, you have no legal liability to pay Chase and they cannot sue you (they retain their lien so they can foreclose). So if you are moving and did not reaffirm, stop paying, and if they continue to misreport to the credit bureau after you request the credit bureau to fix that, get a good lawyer to sue the credit bureau and Chase as you may be entitled to damages.

    A collector certainly CAN accept voluntary payments on discharged debt. Whether you should make any is something you should discuss with your Chapter 7 lawyer.

  2. Theodore Lyons Araujo

    Pro

    Contributor Level 20

    Answered . Fellow Veteran...if you did not file the reaffirmation agreement before you got the discharge then you cannot file it now. Speak with your attorney. You should keep making the payments on the house if you have equity and intend to sell the house. OR if you want to keep the house you could jkeep making the payments so the bank does not foreclose. Without the reaffirmation agreement the bank will not report the good payment histoy but if you were going to reaffirm that tells me you either have equity or want to keep the house.

    The reaffirmation agreement or lack thereof does not change the fct that you are still on the Deed and own the house. You can sell it or refinance with another bank. The fact that there is no reaffirmation agreementon file only means that you are no longer personally liable for the note but the bank cn still foreclose on the mortgage if you do not make your payments.

    Semper Fi,

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    Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship. The opinions expressed herein are those of the author only and the fact that he has worked as an Assistant District Attorney; State Supreme Court Clerk; Special Assistant United States Attorney (Hawaii); Assistant Cornell University Counsel or Judge Advocate, United States Marine Corps should not be relied upon to assume that these statements reflect the policy of these organizations

  3. Constance Denise Coleman

    Contributor Level 9

    Answered . Foreclosure is the process of transferring home ownership from the homeowner back to the bank or the purchaser at the foreclosure sale (normally the banks bid on their properties and usually win because the banks have deep pockets).

    It is very important to find out if you signed the reaffirmation agreement and more importantly, if it was filed with the bankruptcy court. I am not sure about in GA, but in FL you can call the case manager who handled the bankruptcy case and ask them to check the docket for the filing of the reaffirmation agreement.

    If it was not filed, then you will be able to walk away from the house without any personal liability. However, please keep in mind that the process of getting the property out of your name is through foreclosure. So, you will receive a summons and complaint, and all the other documents associated with a foreclosure proceeding.

    If you signed a reaffirmation agreement, then you have told the court and the lender that you will continue to abide by the terms set forth in the agreement. If this is the case, then you can and most likely will be held personally liable if their is a foreclosure.

    It is important for you to decide if you want to keep the home or if you do not. Once this decision is made, contact your bankruptcy Attorney to find out your best options (also keep in mind the reaffirmation issue).

    *****if you like this answer, click on the thumbs up tab at the bottom*****

    Disclaimer: This answer does not constitute legal advice. I am admitted in the State of Florida only and make no attempt to opine on matters of law that are not relevant to that State. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this information. You should not rely on this information alone and nothing in these communications creates an attorney client relationship. .

  4. Dorothy G Bunce

    Pro

    Contributor Level 20

    Answered . Your credit report is never going to be a reliable indication of what is going on in your life. Just accept that fact & keep on top of things by filing disputes with the credit bureau to improve your credit

    It's nothing personal on the part of Chase that this has happened, the system has just been overrun with mortgage problems.

    Bankruptcy law does not address credit reports and so you must rely on the rights you have to dispute any inaccurate credit notations.

    Make you decisions based on what is in your best financial interests, not on emotion.

    And good luck & God Bless you!

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