Legal Question in Bankruptcy in Texas

On filing for Chapter 7,can i reafirm debt on 2 houses

My situation is that i want to file for Chapter 7. I have two mortgages and i need to know if it is possible to reafirm both mortgages, that is 2 homes?

There is absolutely no equity built on either property.

I would like to reafirm the 2nd home due to the fact that I have a buyer for it, but finalizing the sale would be after Oct.17(after new laws kick in) and i need to file right now.

The buyer has been paying on this mortgage faithfully for almost 2 years(lease).There is only closing costs to be payed by buyer.

I am living paycheck to paycheck, with no assests but these two mortgages and a beat up Dodge Neon. And of course, there is no way i could pay the second mortgage anyways.

The buyer has put a lot of money into this property and she is very serious about buying it.

Both properties are here in Texas.

I would appreciate a quick response as time is running out for me.

Thanks for your responses


Asked on 9/25/05, 8:58 pm

1 Answer from Attorneys
Jeffrey Hacker Law Offices of Jeffrey R. Hacker, PC

Re: On filing for Chapter 7,can i reafirm debt on 2 houses

Generally, you can reaffirm both houses and keep both loans, even if there is no equity. I would suggest that if you are considering bankruptcy under Chapter 7, you ought to look closely at taking action prior to October 17th when the law changes and it gets much more restrictive.

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Answered on 9/26/05, 9:31 am


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