Expert: Mark J. Markus- California Bankruptcy Attorney - 4/29/2009

Question
Our bankruptcy discharged in May 2008. We did this to try and save our house which we reaffirmed. My wife lost her job, we have multiple mortgages and tried twice to short sell but one lender will not agree to the short sell. It will definitely fall into foreclosure. Can we re-open our discharged bankruptcy to include our home loans or are things about to get worse for us?

Answer
If I'm understanding you correctly, you reaffirmed the debts on your home mortgages during your bankruptcy case (which means that a reaffirmation agreement was signed by you and your attorney and filed with the court prior to your discharge or, if not signed by your attorney, you attended a hearing in front of the Judge who approved your reaffirmation agreement).  If that's the case, and you did not rescind the agreement within 60 days, then it is binding and you owe the money set forth in the agreement.  You cannot reopen a bankruptcy case to rescind a reaffirmation agreement.

Whether or not there will be a deficiency judgment or possible forgiveness of debt income after foreclosure depends on the laws of whatever State the property is in.