Can we walk away from our mortage if it is under section 524 of the bankruptcy code?

We filed bankruptcy 3 years ago on everything except our home. I believe we had to reaffirm the mortgage to stay in the house but our mortgage statements say we are under code section 524. Does that mean we can walk away from the house and let them take it back without any repercussions?

Asked on October 31, 2011 under Bankruptcy Law, Georgia

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

If you in fact signed a valid reaffirmation agreement and it was timely filed with the court, then you will be liable for any deficiency on the mortgage after sale (foreclosure or otherwise) of the property.   If you did not, then you have no further liability on the property if you "walk away".

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

If you in fact signed a valid reaffirmation agreement and it was timely filed with the court, then you will be liable for any deficiency on the mortgage after sale (foreclosure or otherwise) of the property.   If you did not, then you have no further liability on the property if you "walk away".

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr


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