Congress has inserted a special provision in the Bankruptcy Code that prevents reducing the amount due on the first mortgage on your home. Bitter battles have been fought in congress on this issue where debtors have lost.
Redemption and reaffirmation are complex options which have many traps for the unwary. Unfortunately your question shows that most non lawyers including you do not have the knowledge to avoid them
There may be options to save your home such as loan modification which you should explore. You need to consult with an attorney who knows loan modification and bankruptcy.
Attorney Weinberg has sage advice.
There is way too much information required to give any good advice about this issue in a forum like this.
You REALLY need to meet with a competent local attorney familiar with bankruptcy and loan modification.
You may need to convert your Chapter 7 to a Chapter 13 to save your house, but time is limited. You need to talk to that attorney SOON!
If you need further clarity, please email me at MICHAEL@MIRELAND.US Answers to questions are for general information purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting a competent bankruptcy attorney in your area and providing ALL relevant information.
You did not mention whether you have an attorney helping with your case. If so, you should discuss the options ASAP. If you don't, you should find one to explain your options. Redemption, reaffirmation and the other options available are each distinct, separate legal remedies with consequences for both your bankruptcy and your finances after bankruptcy. Best of luck.
This answer is for informational purposes only and may not be relied upon as legal advice.
If you have questions or need help with your case, please feel free to contact my firm
The Law Offices of Richard N. Gottlieb
Eleven Beacon Street, Suite 325
Boston, MA 02108
We are a full-service bankruptcy firm in downtown Boston. We have significant experience in helping people with home issues during Chapter 7 and Chapter 13 cases.
Bankruptcy law is a very complex and is beyond the clear understanding of most individuals as well as attorneys who do not practice in that area. Your questions will be best answered either by your attorney, if you have one, or by consulting with an experienced bankruptcy attorney. There are many options, including converting to a Chapter 13 bankruptcy, that need to be considered when trying to maximize the benefit of discharging debts and retaining ones home.