Q: Can we be sued for not paying our mortgage after a discharged bankruptcy?
My husband and I filed chapter 7 bankruptcy last year. It was discharged in November. We did not reaffirm the mortgage, but have continued to pay the monthly payments since the discharge. My question is: Can the mortgage company do anything to us financially, if we just decide to quit paying and find another home? I checked our credit report to make sure it was included in the bankruptcy, and the account does say closed and included in bankruptcy.
The mortgage is comprised of two components: a promissory note and a lien on the property called a mortgage. Your bankruptcy filing discharged the note. That entire debt has been eliminated. However, the lender still has a lien on the property.
A: You can pack up and move anytime you wish. The creditor cannot pursue you for the debt. You were very wise to not reaffirm the mortgage. Most lawyers do not recommend a reaffirmation agreement on the mortgaged real estate. You may still be liable for the local city and county code laws regarding the upkeep of the property until the mortgage company forecloses. Check with a lawyer in your area before you vacate the property. Hope it works out. Good luck!
Terrence H Thorgaard agrees with this answer
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