Legal Question in Bankruptcy in Illinois

My husband & I filed Chapter 7 Bankruptcy in 2005 and it was legally discharged late 2005. On our list of creditors, our mortgage was included accidentally with the Mortgage company that we had at that time but we just found out in Dec. 2011. We were still paying our mortgage until March 2011 even though it had been transferred to several companies. We have been served with Court Foreclosure documents by the Mortgage company who is currently carrying the mortgage. One of the questions within the documents which we have to file an answer for says: Names of the persons claimed to be personally liable for deficiency: NONE. Also on the 3 Credit Reporting Bureaus, only one has our mortgage listed. The other 2 has it discharged in the 2005 Bankruptcy. Is it possible to just walk away from this situation or do we need to do a deed in-lieu of the property?

Asked on 2/02/12, 7:33 am

2 Answers from Attorneys

Henry Repay Law Offices of Henry Repay

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To confirm this answer, you should speak with the attorney who handled your bankruptcy or have an attorney review the case. The information should be available online for an attorney that routinely handles bankruptcy cases. Various things can impact the answer, so it is not possible to confirm within the scope of this question and answer format.

When you filed bankruptcy, your mortgage loan had to be listed. You were attesting under oath that you listed all your liabilities. To the extent you were current on the mortgage loan or reasonably current, the lender did not take any action to foreclose at the time. It sounds likely that you did not sign a reaffirmation of the loan that would have recommitted you personally.

From everything you have said, it sounds like you are no longer personally responsible for the home loan. The lender has its mortgage against the house and can proceed to foreclose, but cannot claim anything beyond that. As already suggested though, this answer makes certain assumptions that must be verified for the answer to be reliable.

Answered on 2/02/12, 7:51 am

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