I Want to Discharge My Bankruptcy and Reaffirm My Mortgage. – Jacquelyn

“Dear Lewis,

I filed a chapter 13 in 2008 when I was 4300. behind in my mortgage payments it was put in there and I continued to pay my mortgage, it is current except for the payments put in the chapter 13. I want to convert to a chapter 7 to be dismissed in the chapter 13. I was paying for a car which I owed 16000. at that time now they say I owe 18500. in which I’ve had to have a transmission put in it and now it is slipping again, all I want to reaffirm is my house I will surrender the car but my main concern is keeping my house. My mortgage company are acting like they can’t do any thing, I am waiting on a answer about modification.

My question is is there any company that will refinance me coming out of chapter 7 & what will happen when I affirm my house and the mortgage company doesn’t want to work with me with my behind payments?


Dear Jacquelyn,

I would consider staying in the chapter 13, but surrender the car and ask for permission to buy a replacement.

If you convert to chapter 7, there is no guarantee that the lender won’t foreclose – since you are behind on the mortgage. Chapter 13 gives you the best protection to catch up the back due payments over 60 months.

It is unlikely that a lender will refinance you immediately after a chapter 7 discharge.

Do you have an attorney representing you during the 13? If so, what does he or she say about all of this?

Also, I personally never let a client reaffirm a mortgage coming out of chapter 7. What happens if you cannot get caught up? The lender forecloses and then is able to sue you personally because you reaffirmed the debt.

Good luck!

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

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