@jljr wrote:
Thanks for responding...I'm sorry its just all so confusing. Basically I kept paying my mortgage as usual even though they never sent me any bills. Now it shows up on my CRs IIB. Since discharged they are now finally sending me monthly bills. Been playing phone tag for a week with my attorney trying to figure out "reaffirmation"
I also did a Ch7 back in 2010 and am not very familiar with Ch13. But I don't believe a reaffirmation agreement applies to a Ch13. In a sucessful discharge of Ch7 all your debt is discharged unless you sign a reaffirmation agreement, which exempts that deb from the BK and you are liable for the entire amount of the debt. In a Ch13, you aren't seeking a discharge of all of your debt, you're seeking protection of the bankruptcy court from any creditor trying to collect a debt by coming after you with collection attempts, judgement, wage garnisshment, etc. Instead, you, the creditors and the court agree to a repayment plan. For unsecured creditors (credit cards), the creditor may agree to accept less than the full balance owed as payment in full, But for secured creditors (mortgages, car loans) the payments usually remain the same as before filing, and after discharge you are still liable for the full remaining balance.
So no, you don't want to walk away from your house - they wouild report a foreclosure to the creadit bureaus, significantly damaging your credit. But more importantly if they foreclose and sell the house for less than the mortgage balance they can & will come after you for the deficiency and get a judgment against you that can enable them to take any money you have in bank accounts and get a granishment on your wages.
