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Bankruptcy Law/Can a Mtg be Reaffirmed after Chr 7 disch if it was Relieved from Automatic Stay?

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Expert: - 3/23/2009


Question
QUESTION: In Oregon, if a mortgage was relieved from Automatic Stay during a Chapter 7 Bankruptcy, is it possible to reaffirm the mortgage after discharge? No payments were made for three consecutive months but I thought I read somewhere that if the past due payments plus penalties were all brought current within a certain time frame before the notice of sale, that the mortgage could be re-affirmed.

Thanks for your help!

ANSWER: relief from the automatic stay has nothing to do with reaffirming debts.  In order to reaffirm a debt, the agreement must be signed and filed with the court prior to discharge being entered.

---------- FOLLOW-UP ----------

QUESTION: Oh... so it's not possible to reaffirm the debt/mortgage after discharge?  Does the relief from automatic stay mean that the debtor is still liable for the loan?

I just want to be sure I understand completely.

Thank you,

Answer
My answer was perfectly clear, and you gave me an 8 for clarity, but nevertheless, here are the answers to your questions....

No, you cannot reaffirm a debt after discharge.

And, as to your new question:

No, relief from stay doesn't have anything to do with whether or not a debt is discharged.  It gives a secured creditor permission to proceed with a allowable remedies against the collateral on which they are secured.

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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

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    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)

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

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

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