grandpax5 Posted January 28, 2008 Report Share Posted January 28, 2008 Reaffirmed second mortgage with bank, bankruptcy discharged chapter 7 on 12-04-06, bank recieved paperwork on 12-12-06. Why am I paying on a loan that techincally was discharged and if I stopped paying what can the bank do about it. Is the attorney responseable for this issue. Of course this affects my credit showing as well Link to comment Share on other sites More sharing options...
bingo Posted January 28, 2008 Report Share Posted January 28, 2008 You are paying because, the reaffirmation agreement put you right back in the same spot you were in prior to filing. If you stop paying they may[or may not} start foreclosure proceedings. And, they may sue for any deficiency balance.Why would you hold your attorney responsible? Link to comment Share on other sites More sharing options...
grandpax5 Posted January 28, 2008 Author Report Share Posted January 28, 2008 I am just asking to see if he is responsible, the whole reason for asking is that my credit report shows it included in bk, called the bank said they didn't receive paperwork until after discharge date and that they can't do anything about it cause techicnally it was discharged. the reaffirmation needed to be in before discharge date. wouldn't the date of signing for the reaffirmation be considered as when it should be accepted. Link to comment Share on other sites More sharing options...
bingo Posted January 28, 2008 Report Share Posted January 28, 2008 I am just asking to see if he is responsible, the whole reason for asking is that my credit report shows it included in bk, called the bank said they didn't receive paperwork until after discharge date and that they can't do anything about it cause techicnally it was discharged. the reaffirmation needed to be in before discharge date. wouldn't the date of signing for the reaffirmation be considered as when it should be accepted.Your orginal post is confusing. If, there is no reaffirmation agreement, you can stop paying if you like and have no liability for a deficiency balance. Can't say if they'll try an foreclose or not. Depends on if there is any equity left after the 1st mortgage is satisfied.I'm no fan of reaffirmation agreements. If it was not signed and properly filed, you're in good shape. Sounds like your lawyer dropped the ball but, he sure did you a favor. Link to comment Share on other sites More sharing options...
grandpax5 Posted January 29, 2008 Author Report Share Posted January 29, 2008 This is the deal, we reaffirmed this loan (second) on Dec 4 2006. The Bk7 was discharged on Dec 4 2006. The bank will not fix my credit report that shows this loan discharged even tho it was reaffirmed, because they recieved the paper work 8 days later. wouldn't the day it was signed be considered the day it would be accepted. They said that they could not do anything because they didn't receive the paperwork before the discharge date. Link to comment Share on other sites More sharing options...
Methuss Posted January 29, 2008 Report Share Posted January 29, 2008 Under the new law you have to sign and file your reaffirmation agreement with the court within 30 days of your creditor meeting (section 341). The reaffirmation also must be signed by your attorney stating he does not believe it will cause you financial hardship and it must also be approved by the judge. If you do not get the reaffirmation agreement in by the 30 day limit and have both your attorney and the judge's approval, then the agreement is VOID...never happened....and the lender may be in violation of the permanent discharge if they led your to believe, at any time, that you were still obligated to the loan. Link to comment Share on other sites More sharing options...
grandpax5 Posted January 29, 2008 Author Report Share Posted January 29, 2008 Methuss are you 100% sure? Can you possibly tell me where that says at in the new law, because I am going to challenge my lawyer on this, but I need to make sure please that is all. Link to comment Share on other sites More sharing options...
Methuss Posted January 29, 2008 Report Share Posted January 29, 2008 Methuss are you 100% sure? Can you possibly tell me where that says at in the new law, because I am going to challenge my lawyer on this, but I need to make sure please that is all.Section 524c(3) requires the attorney affidavit and disclosures.Section 524d specifies the court's approval of the reaffirmation agreement.Section 362h says that if you fail to perform your stated intention -- which was listed on your petition -- regarding secured property within 30 days of the first creditor meeting (341 meeting) then the automatic stay is lifted and the bankruptcy no longer protects the property.Section 524k specifies that you have to demonstrate the ability to pay any reaffirmed debt. Link to comment Share on other sites More sharing options...
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