Legal Question in Bankruptcy in Michigan

I would need to know more information from you. Not sure why your monthly payment would have gone up though. A Chapter 7 is a discharge of debt. A discharge of debt is an elimination of the right to hold you responsible for your promise to pay. When you bought your house you got money from a finance company based upon your promise to pay. Your promise to pay was based upon a promissory note you signed. The note is discharge because the promise to pay is eliminated with a Chapter 7. But you also, when you were handed the deed, signed a mortgage giving the finance company the right to take your house if you didn't pay, this is known as a security interest. The security interest is a property right that is not eliminated or affected by the Chapter 7. The lien or security interest remains on the property. Your last question I don't understand. Why did the bank tell you what? They probably told you when you did your loan modification it is independent of the second mortgage. It doesn't matter b/c the government program they used wouldn't allow a lien like to prevent a modification. I would need a lot more information here about the modification. I would also need to see how this is appearing on your credit report.