If you do not reconfirm your mortgage, Your personal responsibility to pay the debt represented by the promissory note is discharged in your bankruptcy case…if you stop paying, the company can foreclose and force a foreclosure sale.

What does it mean that the debt is not restated?

A reaffirmation agreement is an agreement between a creditor and a debtor that waives the discharge of debts that should have been discharged in bankruptcy. …when the debtor does not reaffirm the mortgage, Lenders will stop reporting loans on debtors’ credit reports.

Can you reconfirm the debt after you discharge it?

If you decide to restate your debt, You must do this before entering and leaving the hospital. You must sign a written restatement agreement and submit it to the court. The Bankruptcy Code requires that the reaffirmation agreement contains extensive disclosures.

Can I keep my car without reconfirming it?

reaffirmation is voluntary

If the car is too expensive or unreliable, surrender may be the best option. You can choose to keep the car and continue to pay without reconfirmation. You take the opportunity of the lender to repossess the car, but you also retain the benefits of the bankruptcy discharge.

Can you sell your house if you don’t reconfirm?

Since you didn’t sign a restatement agreement on the mortgage, you’re not responsible for the debt, but the lender still has a lien on the home. you can sell the housebut the mortgage must be repaid from your proceeds at closing.

What if America can’t pay its debts?

31 related questions found

What happens if I don’t reconfirm my mortgage?

If you do not reconfirm your mortgage, Your personal responsibility to pay the debt represented by the promissory note is discharged in your bankruptcy case…if you stop paying, the company can foreclose and force a foreclosure sale.

Do I still own my home after Chapter 7?

After applying for Chapter 7, Your property will go into bankruptcy Held by the Chapter 7 bankruptcy trustee appointed for your case. However, you don’t lose everything because you can remove (exempt) property that is reasonably necessary to maintain your family and employment.

Is it better to hand over your car?

Voluntarily surrendering your vehicle may be better than taking it back. Unfortunately, both are very negative and can have a serious impact on your credit score.

What happens if I don’t reconfirm my car?

If you do not sign the reconfirmation agreement, Lenders can repossess your car after your case is closed and the lift is automatically parked. … reaffirming your car loan will provide the lender with certainty that your car will be repossessed, as long as you make timely payments.

What happens if the reaffirmation agreement is rejected?

Either way – if the reaffirmation agreement is not approved, Your personal responsibility has been releasedAnd – like when a court refuses to approve a reiteration – most lenders will just keep everything the same, as long as you pay on time and insure the vehicle.

What kind of debt cannot be paid off?

Student Loans Discharge from bankruptcy is notoriously difficult; only possible if you can demonstrate to yourself or your dependents undue hardship, such as being unable to maintain a minimum standard of living. 2 In some cases, a court may forgive some, but not all, of your student loan debt.

Chapter 7 How often is it rejected?

rejection frequency

While some Chapter 7 bankruptcy cases are kicked out of court before discharge, statistics suggest this is not the norm.According to the U.S. Courts website, when Chapter 7 cases are filed correctly, they result in a successful debt settlement more than 99% of the time.

Why would a debtor restate a debt to be discharged?

reiterate Against the main purpose of bankruptcy, which is to give the debtor a clean financial position. On the other hand, it can be useful for debtors who really need to keep a specific item (usually a car) and can’t come up with the money to redeem it.

Can I refinance if I don’t revalidate my mortgage?

Firstly, absolutely no legal reason Why you can’t refinance an unconfirmed loan. … the reaffirmation agreement effectively frees the loan from your bankruptcy. If there is no agreement, the loan will be released, but the lien on the property will remain.

Can you restate your debt in Chapter 7?

When you restate your debt in Chapter 7 bankruptcy, you enter into a contract with your lender (called a reaffirm agreement) which makes you personally liable for the debt even though you are discharged from bankruptcy.

Can I restate my debt in Chapter 13?

In the case of Chapter 13, Debtor can restate debt,1 But the debtor is more likely to use the special powers contained in 11 USC §§ 1322 and 1325 to modify and restructure the debt based on the debtor’s budget.

Do I have to reconfirm my car in Chapter 7?

In a Chapter 7 bankruptcy case filed in California, Lenders can repossess your vehicle if You refuse to sign a restatement agreement. However, even if you do sign a restatement agreement, a restatement agreement must be filed in a Chapter 7 bankruptcy case and must be approved by the bankruptcy court.

Can I trade my car after confirmation?

The restatement agreement requires you to pay the full amount specified in the restatement document. You can trade in your car if you get enough money out of it to pay off infrequent restated debts.

How do I revalidate my auto loan after Chapter 7?

When you reaffirm a car loan in bankruptcy, you sign an agreement with the lender that you will continue to pay for the car as if you hadn’t filed for bankruptcy in exchange for keeping it.To reaffirm a car loan, you must be be able to show the court that the vehicle is necessary And the payment is reasonable.

Can I go to jail for hiding my car on a repo?

You can go to jail for contempt of court (which is rare and difficult, but possible), and you really don’t want that to happen.Otherwise, the general rule is It’s not illegal to « hide » your vehicle from the buyback.

Do you still owe debts after voluntary collection?

Furthermore, after voluntary withdrawal, You may still owe your lender money due to insufficient balance and any outstanding charges. If you are behind on these payments, you can send them to a collection agency, which will be another mark on your credit report.

How long can voluntary surrender keep credit?

It will remain on your credit report if the relevant account is closed due to a write-off, repossession or voluntary surrender seven years later The original unpaid amount that resulted in that derogatory status.

Chapter 7 What Assets Are Missing?

Many Chapter 7 filers can keep all or most of their property– but not always. When the filer must surrender property in Chapter 7, the case is an asset case. By contrast, in a Chapter 7 No Assets bankruptcy case, the debtor retains all property, cash, and valuables.

Can I walk away without reaffirming the mortgage?

If you don’t revalidate your mortgage, if you stop making payments and leave the house, Foreclosures won’t show up on your credit report. If so, you have the right to dispute the allegation and have it removed. However, if you do reaffirm your mortgage, you are still responsible for the debt.

Can I reconfirm my mortgage after a Chapter 7 release?

Reconfirm the mortgage debt In Chapter 7 bankruptcy it is possible but not necessary. Learn what a restatement agreement is and how it affects your home mortgage.