Does a discharged mortgage loan affect your credit if you continue to make monthly payments?

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Does a discharged mortgage loan affect your credit if you continue to make monthly payments?

My husband and I filed Chapter 7 bankrutcy 18 months ago. Although our house was discharged we continued to pay our monthly mortgage. Does this help our credit or does this not get acknowledged by the credit bureau.

Asked on April 13, 2012 under Bankruptcy Law, Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I doubt that the debt with respect to your home was discharged in your bankruptcy since ordinarily most home loans are secured by the property which is the basis for the loan. If the debt was discharged with respect to your home, why are you continuing making monthly installment payments on it? I presume that you continue to get monthly invoices for your home from your lender?

I suspect that legal title to your home is still in your name and you did not discharge the loan on your chapter 7 bankruptcy. I suggest that you consult with your prior bankruptcy attorney about the home loan. Your continued payments on the home loan helps improve your credit rating with the three major reporting agencies in this country.


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