If someone has filed bankruptcy and has it dismissed, then you do a reaffirmation on your home loan, does the dismissal invalidate your reaffirmation? 14 Answers as of February 06, 2015

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EDWARD P RUSSELL | EDWARD P RUSSELL
If the Ch 7 case has been dismissed there is no discharge of any debt so that a reaffirmation agreement would have no effect as you still owe on all the debts.
Answer Applies to: Minnesota
Replied: 2/6/2015
Mauritz Van Niekerk, Attorneys at Law
Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
No it does not, that is why the agreement is there.
Answer Applies to: New York
Replied: 2/6/2015
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
If the case was dismissed, reaffirmation agreement is not valid. Since the borrower did not obtain a discharge he/she remains personally liable for the debts as if the BK did not happen.
Answer Applies to: California
Replied: 2/5/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
A reaffirmation is unnecessary when a bankruptcy is dismissed because the reaffirmation only supersedes the bankruptcy discharge. A dismissed bankruptcy is, by definition, one without a discharge.
Answer Applies to: Nevada
Replied: 2/5/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
A dismissal invalidates the reaffirmation as the case did not conclude to discharge.
Answer Applies to: California
Replied: 2/5/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If case was dismissed then the reaffirmation is not binding.
    Answer Applies to: New York
    Replied: 2/5/2015
    Ronald K. Nims LLC | Ronald K. Nims
    A reaffirmation means that the discharged person agrees to become liable on his otherwise discharged debt. If the discharge isn't granted then the reaffirmation is meaningless. Of course, if the reaffirmation included a change in the terms of the debt - you'd need to read the agreement to see if the new terms are effective regardless of whether the discharge is granted.
    Answer Applies to: Ohio
    Replied: 2/5/2015
    Law Office of Andrew Oostdyk
    Law Office of Andrew Oostdyk | Andrew Oostdyk
    This is an interesting question. If you have signed the Reaffirmation Agreement after the Bankruptcy has been dismissed, then it is invalid as it cannot be filed with the Court after dismissal. But, if a Reaffirmation Agreement is signed and there is not a presumption of undue hardship (or in the alternative the Court has approved the Reaffirmation Agreement), the standard language in the Reaffirmation Agreement says it is effective when filed with the Court. Ultimately, I don't think this scenario would hold up in Court, but would make an interesting argument.
    Answer Applies to: Texas
    Replied: 2/5/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Generally the dismissal returns everything to the status quo ante.
    Answer Applies to: Wisconsin
    Replied: 2/5/2015
    The Law Offices of Ryan F. Beach, PLLC
    The Law Offices of Ryan F. Beach, PLLC | Ryan Beach
    When a bankruptcy is dismissed it means that no discharge order is entered. If no discharge order is entered, the person who filed bankruptcy still owes all of their debts. The discharge order is what eliminates a debtor's liability for dischargable debts. The purpose of a reaffirmation agreement is to make a particular debt survive the discharge order. So, a reaffirmation agreement that is filed in a case that is dismissed should be meaningless. In the stated scenario, all of the debt that existed prior to the bankruptcy still exists - the home loan is still owed whether a reaffirmation agreement was filed or not. The terms of the home loan should be the same. The only exception to what I stated above, at least that I can think of, is if what you are referring to as a "reaffirmation" is actually a new valid contract. If you signed a legal document that changed the terms of the home loan, the new terms may control. If you are worried that you have executed something that changed the terms of the home loan consult with an attorney to have them review the document that was signed.
    Answer Applies to: Michigan
    Replied: 2/5/2015
    John W. Lee, P.C.
    John W. Lee, P.C. | John W. Lee
    A re-affirmation agreement is a document signed by the debtor in the context of a bankruptcy that makes the debt non-dischargable in bankruptcy. If the case is dismissed, then none of the debts are discharged. Therefore the re-affirmation agreement is irrelevant. Furthermore, there is no reason to sign a re-affirmation agreement after a bankruptcy is discharged. I think you must be talking about something other than a re-affirmation agreement? Another way to say it, if your case was dismissed, then you still owe the debt on the mortgage whether you signed a re-affirmation agreement or not.
    Answer Applies to: Virginia
    Replied: 2/5/2015
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    If the bankruptcy was dismissed then the home loan remains as it existed before the case was filed. If the bankruptcy was discharged, then it is too late to enter into an effective reaffirmation agreement and the mortgage debt is treated as a "retain and pay" account. As long as you make payments you get to keep the house. If you fail to make payments the lender has the ability to foreclose. If you wish to sell then you must pay off the loan balance in order to get the lien released.
    Answer Applies to: Colorado
    Replied: 2/5/2015
    Wink & Wink
    Wink & Wink | Gigi Wink
    There would then be no need for the reaffirmation to exist, since the dismissal of the bankruptcy means that none of the debts were discharged, and you are still liable for all debts from prior to the dismissed bankruptcy, including the home loan. You are in the same position on the loan you were in before filing, legally. If you have missed payments while the bankruptcy was open, you will also owe those missed payments and fees.
    Answer Applies to: Colorado
    Replied: 2/5/2015
    The Law Office of William Waldner | William Waldner
    Good question. Once a bankruptcy case is dismissed the old obligation on the loan survives. So if you were liable on a loan before filing bankruptcy you will be liable on it after your case is dismissed regardless of any reaffirmation agreements. Remember, a dismissal is different than a discharge.
    Answer Applies to: New York
    Replied: 2/5/2015
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