Did I put myself back on the hook for personal liability of a mortgage debt by doing a refinance?
Question Details:
I filed a Chapter 7 that was discharged in 12/99. My husband did not file at the time. In 10/02 my husband and I did a refinance on the home that was included in the bankruptcy with the intent to reaffirm however no reaffirmation agreement was signed (we have made on time payments to date). In 12/02 we did another refinance. My husband filed a Chapter 7 that was discharged in 8/06, he also included the home in the filing with the intent to reaffirm but no reaffirmation agreement was signed. Did the refi's make my original bankruptcy filing null and void?
The answer may depend in part on whether or not your state is a community property state or not. Since your husband's chapter 7 bankruptcy filing was done after the last refinance, any debt owed was discharged as to him, but probably not to you. This may be a meaningless point however if your only assets are community assets (e.g. income) because I don't think the creditor could come after you personally for that as long as you are married. You should check with a family law or bankruptcy attorney in your state, however, for more details on this.
This only becomes an issue if your house is foreclosed on and there is a deficiency owed after the sale. Many states have anti-deficiency statutes preventing 1st mortgage holders from going after the borrowers for any deficiency, and there are at least temporary federal laws preventing the same thing under certain circumstances.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
