I recently received an email from a blog reader asking about his obligations to his mortgage company when he does not reaffirm:
I have read your blog and you are very through so I write you with hopes that you might answer this question for me. I file Chapter 7 in 08, and did not reaffirm my loan. I am still living in the house and did make some payments. However, i have not for the last 8 months. It is my understanding that I must sign a document to reaffirm and that continuing payment in itself is not a reaffirmation…or? Well it gets a little more complicated. My house is valued at $410,000 and the bank has offered me a deal that is going to be hard to refuse. They have agreed to let me do a short re-fi in the amount of 180k. If I agree to that is that in itself a reaffirmation?
Here is my response: in most cases, when you take out a mortgage loan, you are signing two different types of agreements. The first type is a promissory note whereby you personally agree to make the payments. The second type of obligation creates a property lien, meaning that you, as the owner of the property, pledges that property as collateral for the loan.
More on Can You be Sued for Non-payment of your Mortgage if You Do Not Reaffirm?
Earlier this month I received a call from a Chapter 7 client that I had represented several years ago. He is attempting to refinance his house and has discovered that a judgment creditor has a lien for several thousand dollars. The creditor was listed on the case, but neither he no I knew that there was any judgment.
More on Forgotten Lawsuit Creates Big Problems for Prior Chapter 7 Client
Filed under Chapter 7 issues, Post bankruptcy credit rebuilding by 
I was recently interviewed by a national magazine about how my clients recover from Chapter 7 bankruptcy. Some of the tips I discussed during the interview included:
- asking a friend or relative to add you as an authorized user on a MasterCard or Visa
More on Have You Had Any Success in Recovering from Bankruptcy?
Filed under Chapter 7 issues, Post bankruptcy credit rebuilding by
About 25% of the bankruptcy clients I represent have bounced checks due to insufficient funds. While there can be a criminal law violation if you bounce a check, often merchants do not prosecute unless the amount is significant. Even if there are no criminal implications, a bad check is most certainly a debt that needs to be included in your bankruptcy filing.
More on How to Repair Your Chex Systems Report After a Bankruptcy Discharge
Filed under Chapter 7 issues, Consumer protection, Post bankruptcy credit rebuilding by
This morning, I received an email from a gentleman named Jim, who writes:
How can I file chapter 7 by myself without paying someone, anyone $ 99.00 $199.00, $299.00 etc… Three different people( with a financial intrest of course) said representation is required.
Here is my response: Jim, you certainly have the right to file a Chapter 7 case by yourself. The forms are available either on-line or at an office supply store. There are also several books about how to do this. I am currently reviewing a book entitled The Complete Chapter 7 Personal Bankruptcy Guide
More on Can I File a Chapter 7 By Myself, Without an Attorney
For bankruptcy lawyers, the word "judgment" raises red flags. This is especially true when the judgment comes from another State. He is a question I received from a non-Georgia resident that raises a lot of questions about judgments.
Filed under Post bankruptcy credit rebuilding by
The bankruptcy law requires debtors to attend two educational courses. The first requirement calls for a "debt management course" and must be completed prior to filing – your certificate of completion is your "ticket in" to the bankruptcy process.
More on Financial Managment Course Requirement – Filing Deadline
"How do I recover from bankruptcy?" This question comes up in every new client interview or client meeting that I conduct. There is no no universal answer to this question, but here are a few thoughts:
More on "How Do I Recover from Bankruptcy" – Some Thoughts from the Trenches
Filed under Consumer protection, Post bankruptcy credit rebuilding by
If you have read my blog at all, you know that I have been quite critical of many of the changes brought about by the BAPCPA changes to the bankruptcy law. In general these changes have make the process of filing bankruptcy more complicated and more expensive. Sometimes, I have to decline representation in cases with complications because the potential client cannot afford to pay me for the time it would take to untangle his/her mess.
I often advise my clients that if they are sitting my office discussing their financial problems with a bankruptcy lawyer, then everything needs to be on the table. The house, the cars, the big screen tv, the electronics, and even the time share (!). My job, as the bankrutpcy lawyer is to help my client chart a course of living within one's means and getting rid of debts that are not necessary for survival. Bankruptcy is about what you need, not what you want.
More on Let Bankruptcy Be Your First Step to a Positive Financial Future
Filed under General consumer bankruptcy info, Post bankruptcy credit rebuilding by
