Expert: Mark J. Markus- California Bankruptcy Attorney - 12/3/2008

Question
We filed our bankruptcy in Ca and it was discharged in April of 2008. We
surrendered our house. The bank has yet to sell it, we keep getting
statements, and title is still in our name. With all the loan modifications and
home owner help that is happening right now, we were wondering if we can
take the house out of the bankruptcy if the bank is willing to work a deal with
us so that we can keep the house at a price that we can afford. We did not
sign a reaffirmation at the time of the discharge and have not made payments
because we could not keep the house with the loan terms as they were
originally. Thank you for your help!

Answer
The bankruptcy should not be preventing the bank from working with you.  They are free to enter into a loan modification or any other agreement they want.  In fact, it would be a new contract that is not bound by the bankruptcy discharge.  In any event, there is no way realistically to reopen the bankruptcy case to do a reaffirmation agreement.