how bad did i screw up?

[qwerty999]

I filed for bankruptcy (chapter 7) earlier this year, but did not include my mortgage in the bankruptcy because I didn't want to leave the house. Also, I didn't think I would have any trouble paying the mortgage after eliminating my other debts. That was then...

Now my income has dropped significantly (I work in sales and there aren't a lot of sales to be made with the current state of the economy) and so I'm unable to afford my mortgage payments. What options do I have? Since I just recently filed for bankruptcy, I can't file again... but the only reason I didn't include my mortgage on my bankruptcy and walk away then was because I thought I'd be able to make it.

I'm really underwater on the house too... I just wish I could walk away from it, but I don't think I can do that without filing my mortgage under my bankruptcy and it's too late for that. What are my options?

[bk2009]

Did you reaffirm or just ride through?

[Pandora]

could you please explain how you avoided placing your house in your BK? ALL debts have to be included in filing...

[newbie2]

I filed for bankruptcy (chapter 7) earlier this year, but did not include my mortgage in the bankruptcy because I didn't want to leave the house. Also, I didn't think I would have any trouble paying the mortgage after eliminating my other debts. That was then...

Now my income has dropped significantly (I work in sales and there aren't a lot of sales to be made with the current state of the economy) and so I'm unable to afford my mortgage payments. What options do I have? Since I just recently filed for bankruptcy, I can't file again... but the only reason I didn't include my mortgage on my bankruptcy and walk away then was because I thought I'd be able to make it.

I'm really underwater on the house too... I just wish I could walk away from it, but I don't think I can do that without filing my mortgage under my bankruptcy and it's too late for that. What are my options?

You couldn't have filed without including your mortgage company as a debt. It wouldn't have gotten past your attorney. Now, did you reaffirm the mortgage???

If you reaffirmed (have a signed by the judge reaffirmation agreement) then you have a big problem. Michigan is a deficiency state, meaning they can come after you for the balance of the amount owed minus whatever they get for it at a foreclosure sale. If you did not reaffirm (nothing signed by you, your attorney, lender & judge) then you can walk away.

[qwerty999]

Thanks for the quick responses! You're right that I could not have filed without including my mortgage as a debt, that's not really what I meant when I said "I did not include my mortgage in the bankruptcy". The mortgage was included as a debt in the bankruptcy, but I just continued making my payments because I didn't want to lose the house. I didn't sign any reaffirmation agreement, at least as far as I can remember (and I think I'd remember that). I'm working on getting in touch with my bk lawyer so that he can confirm that for me.

Assuming, I didn't do a reaffirmation, I can really just walk away without having to file for bankruptcy again?

Also, another thing that I'm concerned about is that my daughter's name is on the deed for the house. How does that affect the situation? I'm working now on having her name removed from it just in case that's an issue, but how quickly after her name is removed would it be OK to walk away?

[drowning123]

Lucky you, qwerty. You didn't sign a reaffirmation agreement and that's your saving grace. You were doing a ride-through. No need to file for bankruptcy again. You can just walk away. Your daughter is not a mortgagee, she's just on the deed, so after foreclosure, the title will be transferred out of both your names. Stop paying and stay as long as you can to save some money. Good luck.

[MakinMeCrazy]

hi! my husband and I are in the same boat
We have Bank of America and they told us....."they do NOT reaffirm....you pay...you stay"

Well on our BK papers we checked the box that said "reaffirming" BUT we Never signed any reaffamation papers......Thank Goodness! Our neighborhood is changing for the worse...and we want out.....my question is...even though we checked off "reaffirming" and Bank of America said they DO not reaffirm........and we signed no reaffirment papers...our credit report for the mortgage reads."included in Bankruptcy" zero balance........So my question I guess is...we also are off the HOOK? thank you for any responce

[drowning123]

Yep, you're off the hook.

[obamaloan]

Bankruptcy is a problem because of the damage it does to one’s credit. Having a bankruptcy on a credit report is just about the worst thing that can happen to one’s personal finances. The credit score is going to drop dramatically because of this. That means that it will be more difficult to borrow money for any reason whatsoever. Those who do lend to bankrupt people are going to lend at a much higher rate than those in better financial condition. It is something that can be a huge uphill battle to fight. Considering this, bankruptcy may look a lot less appealing now.

Other options have been around for a very long time, and more are emerging each year. For one thing, customers are able to use debt settlement as a means of debt relief. This is the process of sitting down with one’s lenders and negotiating for a lower amount of debt. When the debtor takes the time to do this, they are working to make sure that they do not have to pay off as much debt as they racked up. It is a perfectly legal method that has saved many people thousands of dollars.

[keepsmiling]

SPAM alert.
Jeez, what is it lately, an epidemic or something?
don't you have anything better to do with your time?

[HHM]

Yep, it is spam, but technically, this person hasn't violated any rules, his profile contains no links to any websites and his signature is clean.

Just because we may disagree with the opinion and know that the opinion is grossly misinformed, doesn't make it spam (at least not yet). Unhelpful, sure, and if this persons keeps making the SAME post, he will be gone.