Mortgage companies will attempt to have a debtor sign a reaffirmation agreement during a Chapter 7 Bankruptcy case.
Most of the time, it is not advisable to sign a Mortgage Reaffirmation agreement.
Think about it. When a debtor files a Chapter 7 bankruptcy, all of his/her debt is discharged. Why would you want to “guarantee” that you are liable on a mortgage debt after bankruptcy. It completely defeats the whole purpose in filing bankruptcy in the first place. A debtor files bankruptcy to “discharge” debt.
In a Chapter 7 bankruptcy, a debtor can surrender the home and walk away without any debt or continue to live in the home and pay the mortgage, insurance and taxes.
Does a debtor have to reaffirm the mortgage note and sign a binding contract making him/her personally liable on the mortgage note post bankruptcy.
The answer to that question is emphatically “NO.” Unfortunately, I imagine a lot of debtors sign reaffirmation documents not realizing the serious consequences of a reaffirmation agreement.
Word to the wise. If it the document came from a bank, read it twice, show it to a trusted friend and consult an attorney if you can afford it. Do not simply sign it and return it to the bank.
Dunne Law Offices, P.C.
1500 John F Kennedy Boulevard Suite #200
Philadelphia, PA 19102
(215) 854-6342 (Office)
http://www.dunnelawoffice.com
http://www.dunnelawoffices.com
http://www.thephiladelphiabankruptcyattorney.com
http://www.bestphiladelphiabankruptcyattorney.com
You may see chapter 7 or chapter 13 as a last resort. But with proper financial planning and legal advisement on your side, bankruptcy can be the moment when you regain control of your finances. I want to support you with all the legal expertise, experience, creativity and deductive reasoning I have to give. My life has been dedicated to developing the skills and experience that allow me to help you navigate financially difficult times. Call for a free consultation at (215) 551-7109.
Subscribe to:
Post Comments (Atom)
-
There is a lot of false information on the internet about bankruptcy. The truth is that creditors have plenty of motivation to keep you sc...
-
A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all ...
No comments:
Post a Comment