Legal Question in Bankruptcy in Minnesota

reaffirmation of loan

i filed a chapter 13 in minnesota in 2007. since then my mortgage company hasnt been reporting me to credit bureau. my lawyer said in mn i didnt have to file a reaffirmation and he didnt do so. i have made all payments and never been late. my mortgage payment makes my balance go down, but my credit report doesnt show my loan, it says closed? what does that mean?


Asked on 3/03/09, 11:06 pm

2 Answers from Attorneys
Adam Kaufman Jensen Sondrall & Persellin, P.A.

Re: reaffirmation of loan

Not sure why they would list it as closed if you continued to make payments to them during the Chapter 13. As long as you didn't discharge the debt during bankrupty it should still be listed.

Was it transferred to another mortgage company or to a receiver?

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Answered on 3/04/09, 4:41 pm
David Kelly-952-544-6356 Kelly Law Office

Re: reaffirmation of loan

You have just run into a despicable practice that started shortly after the new law went into effect in late 2005. You have done nothing wrong and neither has your lawyer. The advice that you should not reaffirm was correct and good advice. My best guess as to why they do this is to punish people for not reaffirming. Even so, reaffirming is usually a really bad idea.

The best thing for you to do is keep track of your payment history yourself so that in any future application for credit you can produce your own record of it. Meanwhile you might want to view my article on this subject on my blog at http://mn-bankruptcy-dwi-probate.blogspot.com/2007/05/despicable-practice-by-mortgage-lenders.html

This response is for general information purposes only and does not create an attorney-client relatinship.

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Answered on 3/04/09, 5:56 pm


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