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Bankruptcy Law/Forclosure after bankrupcy discharged

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Expert: - 11/1/2008


Question
I've been discharged from bankruptcy in April of 2008. I signed re-affirmation on home that I'm living and a rental property. What happens if I foreclosure on one of these 2 property? I heard that I could cancel re-affirmation in six month after bankruptcy is discharged. Is that true? Actually, it's been 7 months for me. My mort. pymt are up-to-date. Just in case I can't do short-sale, what happen if I foreclosure on any of my property? Will I have any liability due to foreclosure? Thank you.

Answer
You have until 60 days after the reaffirmation agreement is filed with the court to rescind it.  Otherwise, the obligation was taken out of the bankruptcy and was not discharged.  That's the main reason why I never advise my clients to reaffirm debts--particularly on real property--because it's simply unnecessary and only benefits the creditor.

Whether you would have further liability after a foreclosure depends on the laws of your State.  You need to consult with a real estate attorney familiar with the laws of your State.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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