Expert: Terry Leeders - 5/30/2007

Question
My daughter filed chpt 7 in 6/2005.  They signed a reaffirmation agreement on their 1st and 2nd mortgage.  They are now getting divorced and want to just let the house go back. Can she reopen the case and then recind the reaffirmation?

Answer
Sorry to hear about the divorce.  Unfortunately, a reaffirmation can only be rescinded for 60 days after it is filed or the date of discharge, whichever is later.  They should discuss it with the divorce attorney on asset distribution- options are to sell and split the proceeds (or costs) or one party sign it over to the other.  I wish them the best. Thanks