I filed an individual Chapter 7 on just my debts. The only joint debt is a mortgage and a HELOC. We intend to keep the house and are current on both payments. It was noted in the filing that we intend to keep the house. My attorney's office called and said the bank had sent them info concerning a modification agreement to "help me out". Earlier I spoke to my attorney's office and was advised that my mortgage debt will be wiped in the BK regardless, but that as long as I kept making payments the bank wouldn't foreclose. I was told that basically in the future if my circumstances change and I no longer want the house I could just walk away. So my question is should I pursue a modification if the bank is offering one? I might be able to get a lower payment and a better rate. I know there would be no principle write down on the first and only a possibility of one on the second, so the only real benefit to me would be a lower payment. But I would basically be reaffirming my debt if I sign. What say the forum?
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Nay! So sayeth the li'l ole me!Stopped paying: 08/10, Filed CH7: 08/27/10 , 341 & No Asset Report: 10/6/10, Last day to object: 12/06/10, Discharged: 12/07/10, Closed: 12/08/10
AHEM.....NOT AN ATTORNEY, NOT ADVICE, ETC, ETC -
Hi Tman,
listen to your atty, don't reaffirm. The only reason to reaffirm is if they offer some pretty spectacular terms.
Just a thought on the HELOC, if you don't have any equity in the 1st mortgage, the HELOC becomes virtually worthless and you might be able to settle for pennies on the dollar.
Good luck to you, glad you have a good atty to protect you!
Tom in ColoCh7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010Comment
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