Legal Question in Bankruptcy in Indiana
In March of 2009 I filed chapter 7 bankruptcy. At the time I wanted to stay in my home. My husband did not file because we wanted to keep his credit in tact since we were going to destroy mine with the bankruptcy. My attorney advised me to sign a reaffirmation agreement for my home so that my husband's credit would not be hit as hard by my bankruptcy (he was the primary borrower and I was the co-borrower. Our life situation changed and my husband lost his job. We had to short sale the house that I reaffirmed and now my husband is filing bankruptcy. The reaffirmation I signed was incomplete, incorrect and not explained to me fully. I want to rescind the reaffirmation, but a couple lawyers have told me that I am out of luck since the debts have been discharged. I just don't understand how an incompletem, incorrect document got filed in the first place. Is there anything I can do to fight the reaffirmation I signed in ignorance? My husband will be off the hook because he is filing chapter 7. Now the credit union will come after me for something that should have been taken care of already!! Please help!!!!!!
1 Answer from Attorneys
Your credit is not destroyed with the bankruptcy. It's on your credit report for ten years, but my experience is that no one cares after two years.
Your bankruptcy in no way affects your husband's credit, so the reaffirmation advice as you present it was wrong.
A short sale usually, but not always, waives any deficiency which would moot your reaffirmation.
A reaffirmation agreement which was approved by the Court is enforceable even if incomplete, incorrect, and not fully explained.
A reaffirmation agreement cannot be rescinded after the discharge issued.
Your incomplete, incorrect document got filed because you signed it.
Read the short sale papers carefully to see if the deficiency was waived, or consult with an attorney about a Chapter 13 filing.
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