Should I reaffirm my Mortgage Debt After Bankruptcy

Should I reaffirm my Mortgage Debt After Bankruptcy

A reaffirmation agreement is entered between the Petitioner in Bankruptcy/borrower and a secured lender prior to a discharge in Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.  A reaffirmation Agreement is signed by the Debtor and Lender and filed with the Bankruptcy Court and most importantly waives discharge of the mortgage or otherwise secured debt.

 The primary advantage of reaffirming a mortgage is that timely and regular monthly payments will be reported to the credit reporting agencies (Equifax, Transunion and Experian), thus accelerating an increase in credit score(s) after a bankruptcy discharge.

 However, a homeowner that did not reaffirm their mortgage and finds themself in an unforeseeable circumstance after bankruptcy, such as, needing to move quickly, a sudden drop in income, increase in expenses or medical reasons may vacate the subject real estate without any personal financial responsibility.  Reason being, since the debt was not reaffirmed, the Lender/Mortgagee may not continue to report the debt to the credit reporting agencies as delinquent.  Further, any deficiency from a judicial sale of the subject real estate would not be the financial responsibility of the homeowner and deemed to be discharged through bankruptcy because the debt was not “reaffirmed” through the bankruptcy proceeding.

 Before signing a reaffirmation agreement, you should consult with your bankruptcy counsel regarding your situation to determine the best option for you.

To speak to an attorney at Sadek and Cooper Law Offices regarding your situation and the best options available to you, please contact one of our offices listed below.

CENTER CITY PHILADELPHIA: 1315 Walnut Street, #502 Phila., PA 19107                           215-545-0008
NORTHEAST PHILADELPHIA: 2375 Woodward Street, #105 Phila., PA 19115                       215-545-0009
DELAWARE COUNTY OFFICE: 1489 Baltimore Pike, #218, Springfield, PA 19064               610-432-3111
BUCKS COUNTY OFFICE: 1609 Woodbourne Road, Suite 203B, Levittown, PA 19057            215-545-1055
NEW JERSEY OFFICE: 302 Washington Avenue, Suite 101 West, Moorestown, NJ 08057  215-545-0008

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Thank you, Sadek and Cooper Law offices for your dedication on my behalf. I appreciate Matthew and Patrick and your staff and all that everyone did to support me in this legal matter. You took an embarrassing, sad experience, for me, and turned it into a successful solution without all the emotional pain expected. After dealing with a loan modification company for over eighteen months without going to an attorney first that is the biggest mistake anyone can make. The Modification Companies set out to sell you lies, broken promises and dilute the homeowner's assets with no knowledge of any kind of law. I can't stress enough stay away from Modification companies, as a Military Veteran and family man, protect you or your family best interest. Go directly to Sadek and Copper you will not regret it! This firm moves with Super speed and diligence protecting you and your family's the entire process, even after watching some of these other attorneys in the courtroom appearing to mishandled their clients’ cases before the Trustee. You made it easy and I’m finally getting my financial life back on track! Thank you for your prompt replies to me, your clear information and preparation needed when at the courthouse. I would of course recommend you to others and I am glad you were the one who had my case. Kind genuine law firm who treats you like family. God bless you all and I pray for your continued success in your field of expertise. This firm is Super Lawyers for a reason. They are the best at what they do! Pete
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06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
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