Posted on: 21st Jun, 2012 02:24 am
hi there… can anyone explain what it means to file chapter 7 bankruptcy and reaffirm the loan? i'm not working, being sued by creditors badly, and my ex has stopped paying on a home. the home has a joint loan and she was responsible for it in our divorce. she is letting the house go into foreclosure and says she will file bankrupt. i would like to file chapter 7 but keep my current home.
Hi Warren,
If you sign the reaffirmation agreement while you're in Chapter 7 bankruptcy filing, then it will make you personally liable for the mortgage payments. After reaffirmation, if you don't pay off the loan, then the lender will foreclose the property and will also come after you in order to recover the deficient balance in full.
Take care.
If you sign the reaffirmation agreement while you're in Chapter 7 bankruptcy filing, then it will make you personally liable for the mortgage payments. After reaffirmation, if you don't pay off the loan, then the lender will foreclose the property and will also come after you in order to recover the deficient balance in full.
Take care.