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Negatives of not reaffirming mortgage in Chapter 7

Posted on: 01st Jan, 2013 09:40 am
what are the negatives of not reaffirming a mortgage on our personal residence in a chapter 7 bankruptcy?
Hi Karen,

I don't think there are any negatives of not reaffirming a loan in Chapter 7 bankruptcy. If you don't reaffirm your loan, then you won't be liable for paying off the loan financially. You can simply surrender the property to the lender and get rid of it.
Posted on: 01st Jan, 2013 06:48 pm
hi karen!

welcome to forums!

it is true that if you don't reaffirm the loan, then you won't be liable for it personally. however, if you need to refinance or get a loan modification after chapter 7 bankruptcy discharge, then it is mandatory for you to reaffirm the debts. unless you do so, none of the lenders will be able to get the loan modified or refinanced.

feel free to ask if you've further queries.

sussane
Posted on: 02nd Jan, 2013 08:30 pm
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