Legal Question in Bankruptcy in Wisconsin

Reopening a Bankruptcy to Add a Mortgage Creditor

I do not understand the question. Normally, the underlying personal obligation on a mortgage is discharged in bankruptcy. The bank, however, retains the right to foreclose on the home if you don't pay. Usually, this has no effect on the bank since first mortgage holders in WI usually do not pursue the homeowner for leftover debt after a foreclosure sale regardless of whether or not they have ever filed bankruptcy. This is because they can take possession six months sooner if they waive the right to pursue the homeowner personally (i.e., garnishee his or her wages). It takes them a year rather than six months if the bank preserve the right to collect personally. If you reaffirmed the debt, you have a certain length of time to rescind that reaffirmation. You need to discuss this with your bankruptcy lawyer (or a new bankruptcy lawyer, if necessary), as soon as possible, since this time is short. If you simply failed to list the mortgage on your schedules, you were technically guilty of perjury when you signed the schedules, since you had to swear that all of your debts were listed. In a no asset case, however, there is a strong argument that the personal debt (rather than the mortgage security interest) was discharged regardless. I would therefore really need to review your electronic court file before I could answer your question. Reopening a no asset bankruptcy is expensive and difficult, but sometimes is possible, if it is really necessary