Fruitville, FL Bankruptcy Law Firms & Lawyers

You are actually better off not to reaffirm the mortgage. They cannot institute foreclosure if you remain current, and they could only go after the house, not you for a deficiency judgment, if at some time in the future you start missing payments.

The question of whether or not you can make payments outside of the chapter 13 bankruptcy plan is dependent upon the policy in the District Court where you're filing your case.  In some courts, they require that all mortgage payments be made through the chapter 13 trustee.  In other courts, they will allow payments be made outside the plan if it is made through automatic deduction and has been so for a period of time.  I would suggest that you contact an attorney in the jurisdiction where you live for further assistance.  Chapter 13 cases can be complicated and the rules are numerous.  You should have good legal representation.

This is being told to more and more people filing bankruptcies. You are not alone. As an attorney, and having spoken with the trustees for chapter 7, they agree that this is not the case and is not necessary. However its kind of like being bullied on a playground. The banks like to play by their own rules. They are not allowed to curtail your rights by forcing a reaffirmation. All reaffirmations are required to be voluntary. I do not endorse the reaffirming of a mortgage and from personal experience have been able to modify a mortgage without reaffirmation.