What happens if you do not re-affirm your mortgage in bankruptcy?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What happens if you do not re-affirm your mortgage in bankruptcy?

I filed bankruptcy and my lawyer never mentioned anything to me about filing for reaffirmation of my mortgage or vehicle. Since the bankruptcy, I have paid off my vehicle and continue to pay my mortgage on time. I have received the title to my car. If I continue to pay on my mortgage, will the house stay in my name or because I did not file a reaffirmation, does the bank have all legal rights to the house even if I am paying the mortgage?

Asked on October 17, 2011 under Bankruptcy Law, North Carolina

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Not reaffirming a mortgage obligation means the property remains encumbered by the mortgage but you are no longer personally liable for the debt. This means that you cannot be sued personally if you were to abandon the property for any amounts still owed under the mortgage (e.g. if your home was foreclosed on). 

However, since you no longer have any obligation to make monthly payments, you are not personally accessing any credit. Consequently, your credit report will not reflect the payments that you make. 

Your lawyer more than likely did not have you reaffirm the mortgage on purpose. Many attorneys try to insulate their clients from further liability in the event of a foreclosure (as explained above).  Unfortunately they fail to fully explain this to their clients.

Bottom line, the house remainsd in your name and as long you continue to make the payments on time, you should be fine.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption