I filed chapter 7 bankruptcy. I asked my attorney not to include my home. He did without notifying me. how do I fix that?
Brooklyn, NY |
My home loan shows on my credit report as bankrupt. Is there anything that can be done to have my loan reaffirmed? What are the repercussions of having my loan included in the bankruptcy. What can I do about the attorney's conduct?
What you were expecting isn't possible. Bankruptcy law requires that you disclose everything you own & everything you owe. Most people that say "don't include" a particular debt mean that they wish to retain the asset, not that they intend to break the law. The attorney's conduct was legal. It is unfortunate that you didn't read the bankruptcy paperwork before you signed it so you could ask the question you are only now asking. As long as you continue to pay your mortgage, you will be able to retain your home. However, the mortgage company will stop reporting this debt to the credit bureau.
BTW, if you had excluded this debt from your bankruptcy, your mortgage company would have discovered this information eventually anyway. Lenders continue to monitor your credit regularly and many large lenders have their computer talk to the bankruptcy court computer every night, sharing info when a social security number in a bankruptcy matches up to one of their customers. Hope this perspective helps!
Schedule an appointment with your lawyer to make sure the petition is complete and accurate. The failure to file a complete and accurate petition may be a dismissal of your bankruptcy case.
If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate it. Thanks. For further information you should see an attorney and discuss the matter completely. If you are in the New York City area, then you can reach me during normal business hours at 718 329 9500 or www.mynewyorkcitylawyer.com.
If your petition lists your home as an asset, and you in fact own it, your attorney did what is correct and appropriate and also avoided a possible bankruptcy fraud charge against you. You cannot "pick and choose" what you report on a bankruptcy petition. All property that you own and all debts that you owe must be listed. Anything less would be perjury or bankruptcy fraud and based on the facts you have provided your attorney has acted appropriately.
As to reaffirming a mortgage--this is a big mistake. Sure the mortgage company will want you to do it, but think about it--if the mortgage company wants you to do it so badly, do you really think it is in YOUR interest to sign a reaffirmation agreement? Before you sign a reaffirmation agreement you should consult with your attorney.
Finally, how your credit report lists your mortgage now that you have filed bankruptcy may simply be a mistake that can be corrected by properly notifying your the credit reporting agency.
No attorney client relationship has been created by this answer.
Your attorney did the correct thing. You are not allowed to "leave out" any debts, especially a debt and possible an asset as major as your home. If you are current on the mortgage payments and continue to be current on it you will be fine. It usually is not advisable to reaffirm the mortgage. You should discuss reaffirmation with your attorney. As far as what you should do about your attorney's conduct, you should thank him/her for saving you from major problems. Good luck.
As of the date of filing, you are required by law to include ALL Debts, and assets. The lender will not move to foreclose on your property post bankruptcy, assuming you stay current with your monthly payments (some jurisdictions also have loss mitigation/loan modification options). A reaffirmation agreement will simply "put you back on the hook" and re-create liability as to the mortgage.