Reaffirmation Hearing

[deepin]

Filed Chapter 7, had 341 meeting - now in the 60 day club.

Received notice today that we will need to attend a reaffirmation hearing 'due to presumption of hardship' regarding our mortgage.

A couple of questions:

How much preparation do I need to do the refute the presumption of hardship or should I expect my attorney be responsible for that?

Will I likely need to attend seperate reaffirmation hearings for both my primary & secondary mortgages? (They are with the same company).

Can anyone share there experiences with reaffirmation hearings?

[2live]

I'd like to know too. My 341 was done and still waiting on reaff. paperwork for house but I didn't think there'd be another hearing.? At the 341 the trustee did ask me if I was reaff. my house and I said yes. He didn't mention anything about it being a hardship.

[justbroke]

Received notice today that we will need to attend a reaffirmation hearing 'due to presumption of hardship' regarding our mortgage...

How much preparation do I need to do the refute the presumption of hardship or should I expect my attorney be responsible for that?

Your lawyer should have already countersigned your re-affirmation agreement indicating it was not a hardship. I really don't understand how you now have to go to a hearing on a "presumption of hardship". The only thing I can think of, is that you are "underwater" on your mortgage and the value of your home may be less than or not that much more than the balance on your first mortgage. It could be that the Court feels that the second mortgage is a hardship. Of course, this is all just speculation as I have no clue why you need to do such a hearing when you have a lawyer.

Just about everything that would be evidence in your case, should already be in your Schedules. That includes income, dependents, other expenses, value of property, payments, term, interest rate, etc.

You shouldn't need to do much but show up.

Will I likely need to attend seperate reaffirmation hearings for both my primary & secondary mortgages? (They are with the same company)

Usually, they do these reaffirmation hearings at the same time so as not to tie up lawyers and debtors.

[eddiep]

Is your mortgage payment a huge percentage of your income? Or is it way over the median housing cost for your area?

[DeadManCrawling]

I read a case in which the lawyer refused to sign a reaffirmation, because he could not do so ethically. The debtor wanted to keep a home that was clearly a very bad move, underwater and so on.

Attorneys follow an ethics code sometimes, and an attorney who cares about such things might refuse. This goes against the debtors wish of course, but the attorney is in a very difficult circumstance if they have and follow a conscience.

[chad9162]

The BK code say you don't have to reaffirm "real" property so I'm curious why your attorney is allowing you to do this. Even if you have equity as long as you stay current they can not foreclose.

Are you represent by an attorney for the reaffirmation? Did he sign the reaffirmation agreement?

Lucilus found this...

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html

Unless the debtor is represented by an attorney, the bankruptcy judge must approve the reaffirmation agreement.

I found this to be interesting.

[deepin]

My guess is that this hearing is necessary because our Schedule J shows approx -$500 in disposable monthly income.

We have a small amount of equity in our house that is exempt.

So my question is how do we go about defending our decision to reaffirm ...

Is it as simple as showing which other expenses we are prepared to cut back on to make this work?

[chad9162]

Ok we all know that you can't live on -$500 so yes I think they will consider the total circumstance. The paperwork should list "post" BK budget. At the same time I don't think it matters since the court "must" sign the reaffirmation when not represented by an attorney. From what I've read the hearing is to make sure you understand what you're signing.

[LuciluS]

Deepin:

I would let you Attorney handle this matter. As Chad stated we know you can't live off a ($500) a month. I'm sure your Attorney knew what he was doing IF he signed the Reaffirmation.

You've already had your 341 hearing. I think your Attorney know what he/she is up against and is prepared for such.

Possible to produce evidence your mortgage payment does not create a hardship?

Luci

[deepin]

Some of my research suggests that showing the willingness to cut back on the expenses shown in our Schedule J will be enough for the court to sign off on the reafirmation agreement - I hope it is that easy.

I guess I'm surprised more folks don't have first hand experience with a reaffirmation hearings ... I can't be the only one reaffirming with a negative DMI.

[LuciluS]

Some of my research suggests that showing the willingness to cut back on the expenses shown in our Schedule J will be enough for the court to sign off on the reafirmation agreement - I hope it is that easy.

I guess I'm surprised more folks don't have first hand experience with a reaffirmation hearings ... I can't be the only one reaffirming with a negative DMI.

I wish I could be of more assistance. I know we will be reaffirming our home & will have a negative DMI; however, not filing until 9/09.

We probably found the same research LOL! Hope someone has experience regarding such & will be of help in the Quick future.

Luci

[chad9162]

I'm in the process but will not be represented by an attorney for reaffirmation hearing. We have our 341 in a few weeks and just sent a reaffirmation agreement in so I'll let you know.

[deepin]

Your lawyer should have already countersigned your re-affirmation agreement indicating it was not a hardship. I really don't understand how you now have to go to a hearing on a "presumption of hardship".

You shouldn't need to do much but show up.

Just Broke:

I can't say for sure that my lawyer countersigned. However, even if he did --doesn't the fact that we have a negative DMI force the court to hold the hearing to review the agreements?

[deepin]

Was hoping someone on the board could offer at least one reaffirmation hearing success story.

Makes me think I should prepare myself for a ride-thru.

[justbroke]

Was hoping someone on the board could offer at least one reaffirmation hearing success story.

Reaffirmations happen all the time. They are approved by attorneys and Judges day after day. However, like yours, some need a hearing to determine if they are not hardships. I can't tell you if having a negative disposable income (on Schedule J) is an indicator that it may be a hardship. However, just go in prepared to discuss how it is not.