Mortgage Reaffirmation and Bankruptcy

Mortgage companies will attempt to have a debtor sign a reaffirmation agreement during a Chapter 7 Bankruptcy case.

Most of the time, it is not advisable to sign a Mortgage Reaffirmation agreement.

Think about it. When a debtor files a Chapter 7 bankruptcy, all of his/her debt is discharged. Why would you want to “guarantee” that you are liable on a mortgage debt after bankruptcy. It completely defeats the whole purpose in filing bankruptcy in the first place. A debtor files bankruptcy to “discharge” debt.

In a Chapter 7 bankruptcy, a debtor can surrender the home and walk away without any debt or continue to live in the home and pay the mortgage, insurance and taxes.

Does a debtor have to reaffirm the mortgage note and sign a binding contract making him/her personally liable on the mortgage note post bankruptcy.

The answer to that question is emphatically “NO.” Unfortunately, I imagine a lot of debtors sign reaffirmation documents not realizing the serious consequences of a reaffirmation agreement.

Word to the wise. If it the document came from a bank, read it twice, show it to a trusted friend and consult an attorney if you can afford it. Do not simply sign it and return it to the bank.

Dunne Law Offices, P.C.

1500 John F Kennedy Boulevard Suite #200

Philadelphia, PA 19102

(215) 854-6342 (Office)


About Dunne Law Offices, P.C.

Philadelphia Bankruptcy Attorney You may see chapter 7 or chapter 13 as a last resort. But with proper financial planning and legal advisement on your side, bankruptcy can be the moment when you regain control of your finances. I want to support you with all the legal expertise, experience, creativity and deductive reasoning I have to give. My life has been dedicated to developing the skills and experience that allow me to help you navigate financially difficult times. Education As an undergraduate at Pennsylvania State University, I served as an infantry soldier in the Pennsylvania National Guard and as a cadet in the R.O.T.C. My major in Criminal Justice led me to attend the New England School of Law in Boston. Once there, I honed in on bankruptcy law and was a scholarship recipient for “Securities Regulation.” I followed that with an internship at the Boston Stock Exchange and a clerkship for McGarthy & Ged. During this time, I learned how to help people find financial relief through legal action. Professional Memberships and Recognition Bankruptcy law changes every day. Right now, courts across the United States are making decisions that will impact your judge’s point of view on your case. As an effective consumer bankruptcy lawyer, I stay apprised of the most recent happenings in the field through active membership in the following organizations. State Bar of Pennsylvania – Licensed to practice before all state courts, the United States District Court for the Eastern and Middle District of Pennsylvania, as well as the United States Court of Appeals for the Third Circuit National Association of Consumer Bankruptcy Attorneys (NACBA) National Association of Consumer Advocates (NACA) Call for a free consultation at (215) 551-7109.
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