Legal Question in Bankruptcy in New York

Second mortgage after bancruptcy

I filed bankruptcy a few years ago and had a second mortgage included in that. Checking my credit report now shows a zero balance owed and that it was included in the chapter 7. I have been continuing payments but never signed anything to reaffirm this debt. Do I still have to continue paying even though it was included in C7 and has zero balance? Would they still have claim or lien on my property? I am looking to refinance and want to know before I approach banks.


Asked on 3/13/08, 10:23 am

1 Answer from Attorneys
Stephen Starr Starr & Starr, PLLC

Re: Second mortgage after bancruptcy

A personal bankruptcy discharge only discharges a debtor's personal liability with respect to discharged debt. It has no effect on liens or mortgages on property of the debtor that was included in the bankruptcy estate. The creditor holding a lien or mortgage on property of the debtor continues to hold the lien or mortgage post-discharge and can enforce the lien or mortgage against the property (such as by foreclosure or repo), but not against the debtor personally.

The following is intended as general information of interest to readers of this website and is not intended as legal advice for your specific situation. Facts not disclosed in your short query may affect your rights and remedies. You should consult an attorney for legal advice specific to your situation.

For further information regarding personal bankruptcy matters please feel free to visit the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com/faqs.htm.

Best regards,

Stephen Starr

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Answered on 3/13/08, 12:21 pm


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