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?

Related Topics:
2 Lawyer Answers

L. Ilaine Upton

Answered
  • 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

Answered
  • 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

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.