Bracey, VA asked in Bankruptcy for Virginia

Q: I had filed bk chapter 7 in 2015. I was under impression I had reaffirmed my home mortgage and have continued to pay.

I recently discovered I had not reaffirmed the mortgage. I began reviewing my credit info and discovered this and that the mortgage company has closed the account with a balance owed as 0. No payments have been reported since the bk. At this point if I walked away from the house would this effect my credit any more than what has already been done?

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2 Lawyer Answers

L. Ilaine Upton

  • Bankruptcy Lawyer
  • Annandale, VA
  • Licensed in Virginia

A: It is a very sad fact of life that once your personal obligation for your mortgage is discharged in a Chapter 7, the lender will not report your payments, even though they are on time. I have struggled with this for many years as a bankruptcy lawyer, and have no solution. If it makes you feel any better, in the Eastern District of Virginia, judges won't let you reaffirm your mortgage. Yes, you can walk away from this obligation without any recourse. I do not believe this would affect your credit at all.

1 user found this answer helpful

Timothy Denison

  • Bankruptcy Lawyer
  • Louisville, KY

A: Yes. You can walk away without obligation and likely no negative impact at all.

1 user found this answer helpful

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