Keep home when filing chapter 7 and then walk away?

[scb]

If you file for Chapter 7 and would like to keep your home and still have a mortgage, is the agreement on the terms of the mortgage between the lender and debtor only or does the BK court have a say?

2. What does it usually entail besides the debtor agreeing to make monthly payments especially if the current mortgage balance exceeds the actual price of the home?

3. Once the BK is discharged and you are allowed to keep your home, can you walk away after the discharge because you can't afford it? Does it have to go back to BK court?

[JRScott]

If you reaffirm then you still owe the same amount and if you walk away later it would then be another mark on your credit history.

Many people choose not to reaffirm and continue making timely payments. In this case you would still owe the same amount and state laws keep you from losing the home so long as you make payments. However if you fail to make payments they can move to retake the home. You can walk away at any time after discharge without adverse effects. Note that these payments will not though show on your credit report.

[DustinLH00]

If you reaffirm then you still owe the same amount and if you walk away later it would then be another mark on your credit history.

Many people choose not to reaffirm and continue making timely payments. In this case you would still owe the same amount and state laws keep you from losing the home so long as you make payments. However if you fail to make payments they can move to retake the home. You can walk away at any time after discharge without adverse effects. Note that these payments will not though show on your credit report.

Will the payments show on the credit report if you reaffirm?

[scb]

Thank you for the valuable information. Here are a couple of questions that I hear a lot of people are doing. This may not be relative to BK, but thought I'd ask:

Particularly in California, say you're married and the home you live in was purchased by your husband prior to marriage. Is it legal to walk away from it, which will affect the husbands credit, and then purchase another home in the wife's name?

[JRScott]

Will the payments show on the credit report if you reaffirm?

I believe they are suppose to.

[JRScott]

Thank you for the valuable information. Here are a couple of questions that I hear a lot of people are doing. This may not be relative to BK, but thought I'd ask:

Particularly in California, say you're married and the home you live in was purchased by your husband prior to marriage. Is it legal to walk away from it, which will affect the husbands credit, and then purchase another home in the wife's name?

California is a community property state so it would affect both of your credit.