Legal Question in Bankruptcy in Indiana

The discharge for our chapter 7 bankruptcy was in 2008, which we reaffirmed on our home. Now, after having some financial problems, we have tried to get a loan modification. We have been denied because the mortgage company said they had never received the reaffirmation from the bankruptcy lawyer. Lawyer is saying they didn't receive paperwork from mortgage company. So now we are stuck with no verification of reaffirmation and may lose our home because they will not approve a loan modification. Is there anything we can do to stop the lose of our home? Or any legal action we can take since someone at one place or the other did not do their job with the reaffirmation?


Asked on 7/05/12, 9:58 am

1 Answer from Attorneys
Charles Andersen Charles Andersen, Atty

absolutebankruptcy.org Re affirmation agreements are 100% voluntary and, a creditor has no legal obligation to offer or agree to re-affirm a debt. If the bank wasn't cooperating with your lawyer as far as sending paperwork, we can assume that at that time they were not agreeable to re-affirmation.

Be careful in accepting at face value what they say about the reasons for your denial of a loan modifcation as well. Plus, there's no showing that they would have offered you a loan modification if you had re-affirmed. They are probably just using the non re affirmation as a pretext to reject you when they wouldn't have gven you the loan modifcation for other reasons.

If you can really establish that you can get a loan modiication, but for the fact that you never-affirmed, you can always petition the court to re-open yor case and approve a re-affirmation agreement

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Answered on 7/05/12, 12:11 pm


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