Beach City, TX Bankruptcy Law Firms & Lawyers

The following answer applies to California jurisdiction only. I don't know of any local bankruptcy attorney who would condone or suggest to a client that they reaffirm a mortgage debt. It is not in your best interest to do that so the fact that you did not reaffirm is not a bad thing. If at some point you can't afford to make the payments anymore because you have filed and received a discharge in bankruptcy AND because you have NOT reaffirmed the debt you can walk away from the property. The only remedy the creditor(s) have is to take the property, they cannot sue you for any deficiency or attempt to collect from you. The protection of the bankruptcy discharge makes any such collections illegal. A loan modification, should you get one, would not change this result. Refinancing however would because when you refinance you get a new loan and in your case it would be a loan acquired after the bankruptcy had already been filed. Hope this perspective helps. Take care.

Retirement money" is generally exempt from creditors. You do need to clarify with a consultation with an attorney what you mean by "retirement money". Unless there is a fraudulent transfer issue, you can typically protect an IRA, 401k, and other retirement assets. Mere savings that you want to use in retirement would not be protected in bankruptcy.

First of all, you need to consult with your attorney about this matter. If you reaffirmed the debt, yes they can go after you for a deficiency judgment. If you are unable to pay, and the car is repossessed, and the bank gets a lifting of the automatic stay, and they get a deficiency judment against you, it will be good for 20 years if they record it properly. You see there are many things that your attorney can help you with, on this one issue.