Expert: Terry Leeders - 5/23/2007

Question
HI,
I filed a chapter 7 bankruptcy in march of 2005.  I think I signed a reaffirmation agreement at the bankrupty hearing, but am unsure as to exactly what I did sign as I have been Ill.  I stayed in my home and was suppose to be reaffirmed at the time and made payment on it untill about july of 2006, then I could no longer afford it.  I do not live there any more, they are foreclosing and comming after me for the loan.
My lawyer was not very good at all, I can not even get him to talk to me to answer my questions.  I am wondering if it is possiable that this reaffirmation agreement might not valid because the attorney didn't do something right or because when I signed it I was really not coherent at all when I was at the hearing due to medication.
I am still Ill and I am just desperatly looking for anything that might help me get these people to stop comming after me.  I am on federal disability.  I am also in wisconsin.  I do not know if the lawyer filed this as a state or federal bankruptcy thing.  Thank you very much for your help.

Answer
Hi Jamie.  Even  if you did sign a reaffirmation agreement, if you fell behind on the payments, they can continue a foreclosure.   A reaffirmation agreement, basically renews your debt to the lender, here the mortgage company.   It keeps you responsible for the debt even though you filed bankruptcy.  This is done so you could keep the home.  Now that the bankruptcy is over, and you are falling behind in the payments, that is why the foreclosure is starting.  You still have the right to sell or refinance before it goes thru.  Once sold at sherriffs sale, the lender may be able to come after you for the balance.  Now, if you did not sign  the reaffirmation, or if it wasn't filed, then you may be able to walk away without owing anything more.  See if you can find out from your attorney, otherwise go to the bankruptcy court to check your docket to see if the reaffirmation was entered.
Thanks