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Bankruptcy Law/mortgage loan reaffirmation after bankruptcy

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Expert: - 2/23/2009


Question
Our Lawyer didn't say anything to us about having to reaffirm our mortgage loan after filing chapter 7 about 4 years ago. I am just now finding out that we were supposed to do this;where do we stand legally if we were to refinance or sell our house in the future. We have acquired about $45,000 worth of equity in the house. what do we need to do now?We are in VA.

Answer
Reaffirmation of real property debt is not required.  If you had reaffirmed the mortgage debt, you would have been required to pay the entire balance of the mortgage(s) so that if you lost your job and they foreclosed, you would have possibly owed a deficiency amount despite the bankruptcy.   Without the reaffirmation, you get to remain in the home, maintain the payments, and have no future obligations on the loan if you decide to let it be foreclosed.  

There's no reason you shouldn't be able to refinance or sell your house, although you may not be able to refinance with your existing lender.

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Mark J. Markus- California Bankruptcy Attorney

Expertise

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.

Experience

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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