Legal Question in Bankruptcy in Massachusetts

It is important to understand the difference between a "mortgage" and a "promissory note". The "promissory note" is your promise to repay the money. A bankruptcy discharge under chapter 7 relieves you of the promise. A "mortgage", however, is a form of deed in which you give the lender a partial ownership interest in your property, and if you don't pay the promissory note (notwithstanding the discharge), the lender can still foreclose the mortgage and sell the property; it just can't make you pay it any money, such as for a deficiency. This is true even if the mortgage was never recorded. However, an unrecorded mortgage is a "grand prize" for a bankruptcy trustee because the trustee can take over the mortgage and sell the property. This presents VERY serious legal issues, and you must talk to your attorney or another experienced bankruptcy attorney in order to protect your rights.