Legal Question in Bankruptcy in Texas

Reaffirmation - Beneficial or Not for Debtor

My daughter is a single mother with two school age children. Unfortunately she has had to file Chapter 7 bankruptcy. She is buying her house and has a car note with her credit union. She stated her intentions to reaffirm both of these debts. Her mortgage company told her that they do not honor reaffirmations. They said as long as she stays current there is no problem. Are there any negative consequences or impacts to her because the mortgage company does not honor reaffirmations?

Thank you.


Asked on 8/13/02, 1:45 pm

2 Answers from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Reaffirmation - Beneficial or Not for Debtor

I am surprised that the mortgage company does not want a reaffirmation agreement. Without one your daughter is discharged from the debt. Providing you r daughter performs by payment, so long as you have a representation from the mortgage company that it will perform your daughter should be alright. Be careful not to default. Larry Maun 713.266.2560

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Answered on 8/13/02, 2:52 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Reaffirmation - Beneficial or Not for Debtor

I have heard of this happening more frequently now. This almost never occured in the past. However, she is not disadvantaged. The bottom line is as long as your daughter makes her regular monthly mortgage payments timely the mortgage lender cannot foreclose.

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Answered on 8/13/02, 5:05 pm


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