Legal Question in Bankruptcy in Pennsylvania

Reopen a bankruptcy

We have filed chapter 7. We are working with our mortgage holder to hopefully modify our mortgage to a lower rate. They have been listed on our bankruptcy schedule as being a creditor we are going to reaffirm with however we have not worked out any formal ''on paper'' agreement. The lender sent an appraiser out but has said they cannot go any further until our bankrutptcy is discharged. Is this right? and what if after the discharge they say that they are not going to modify the loan but rather continue with the foreclosure? If this happens can we reopen the bankruptcy and file on them?


Asked on 10/14/02, 1:04 pm

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Reopen a bankruptcy

If they will not reaffirm and you are still facing foreclosure after your chapter 7 case is discharged and concluded, you would be faced with filing a chapter 13 case. Chapter 13 would essentially force the mortgage company to accept a payout for the past due mortgage according to your repayment terms (repayment over 3 to 5 years). I'm not sure why the mortgage company is taking this position with you unless they believe there is no equity in the home. I hope this answers your questions. Please feel free to call me to personally discuss your situation in more detail. ph. (800) 303-0720

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Answered on 10/15/02, 9:03 am


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