Expert: Terry Leeders - 11/14/2008

Question
Our Chapter 7 was discharged in May 2006 (Michigan). We were able to keep our house. However, my wife just lost her job, and there's no way that we can make the payments any longer. Can we re-open our case to include the 1st and 2nd mortgages on our house?

Thank you.

Answer
Normally no.  If you signed a reaffirmation agreement, the agreement must be rescinded the later of discharge or 60 days from signing.  IF you didn't sign reaffirmations, then you are not on the hook for the mortgages and can walk away.  Talk to your lawyer to confirm.