Expert: Terry Leeders - 5/22/2008

Question
My chapter 7 was discharged in 11/2005. I did not reaffirm the mortgage and it does not report on my credit although I have continued to make the monthly payments. My wife has been laid off and I can't keep the payments current. I am afraid that I am going to have to walk away. What issues do I face as a consequence ?

Answer
none. Your debt is technically discharged thru the bankruptcy.  You can walk away and not owe anything else on the mortgage.  You may be responsible for tax and insurance and property upkeep until the foreclosure is complete, but the debt to the lender is discharged thru bankruptcy if you did not reaffirm the debt.