Legal Question in Bankruptcy in Nevada

Re: Ch 7 Reaffirmation

There is never a need to do a reaffirmation agreement if you are not behind in payments. You haven't breached the underlying contract.

Reaffirmation on Home Loan

A reaffirmation is an agreement to pay a debt in spite of the Bankruptcy. The Bankruptcy Judge's prefer not to have Debtor's reaffirm because if they become unable to pay down the road, they can be sued for the difference between the value of the property and the balance of the debt.

In Nevada, it would be unusual for a first mortgage company to sue for the balance between the value of the real estate and the amount of the debt, so this issue is just legal pie in the sky.

However, what not reaffirming really means is that you will not be able to use your current mortgage payments to rebuild your credit. By not offering a reaffirmation, your mortgage company is saying that they will take your money every month & won't report anything to the credit bureau about your payment history, good or bad.