What happens if I did not reaffirm my mortgage?

If you do not reaffirm the mortgage, your personal liability for paying the debt represented by the promissory note is discharged in your bankruptcy case. The company can foreclose the mortgage and force a foreclosure sale if you stop making payments.

Does a creditor have to accept a reaffirmation agreement?

Reaffirmation agreements are strictly voluntary. A debtor is not required to reaffirm any of his or her debts. There may be other ways to renegotiate payments with creditors without entering into a reaffirmation agreement. A creditor cannot compel you to enter into a reaffirmation agreement.

How can I get out of a reaffirmation agreement?

To cancel a reaffirmation agreement, you must notify the creditor. It is a good idea to notify the creditor in writing via certified mail with a return receipt postcard so you have proof that you have rescinded the agreement.

What happens to omitted debt in Chapter 7?

However, in most bankruptcy districts, the omitted debt is discharged if yours is a “no asset” bankruptcy case. A no asset case means that you do not have property that the trustee could take and sell off to pay your creditors. The majority of Chapter 7 bankruptcies are no-asset cases.

Can You reaffirm secured debt in Chapter 7 bankruptcy?

In Chapter 7 bankruptcy, you can keep property secured by collateral (such as your car) by reaffirming the debt. Please answer a few questions to help us match you with attorneys in your area. By clicking “Submit,” you agree to the Martindale-Nolo Texting Terms.

What happens if I file a Chapter 7 bankruptcy?

You’ll still be legally bound to pay the deficiency balance even if the property is damaged or destroyed. And because you have to wait eight years before filing another Chapter 7 bankruptcy case, you’ll be stuck with that debt for a long time.

Can a debt be discharged in a no asset bankruptcy?

The Rule in Most Circuits: Debt Discharged in No Asset Cases. Bankruptcy rules require you to list all of your creditors in your schedules. If you do not, then the omitted debt might not be discharged. However, in most bankruptcy districts, the omitted debt is discharged if yours is a “no asset” bankruptcy case.