Nyack, NY Bankruptcy Law Firms & Lawyers

No it is not advisable to reaffirm a mortgage and the time to have done that is over as there is a specific timeframe during which a reaffirmation can be executed. More importantly, you are not required to have reaffirmed a mortgage in order to later obtain re-financing. What you may need is a written proof from current lender that shows what payments that have been made on the loan since the Bankruptcy filing. Send a written request to your current loan servicer asking for a statement showing account activity since the BK case was filed. The potential new lender in determining whether to finance a loan will want to see the current balance on the note and proof of consistent on-time payments. You can also request that this statement be appended to your credit report by forwarding it to the credit bureaus with such a written request. Once the document is added to your credit report it will be available to anyone who runs a credit check although it will age with time and therefore I advise my clients that if they wish they can request such a document once a year and append it to their credit report or simply keep a copy in their records and provide it with the loan application when they seek different financing options.

If you have a lawyer, you should listen to him/her. A check is writing, but the terms won't be clear. As long as you both agree it's a loan, then it needs to be repaid. To say that a loan dies with you is merely a way of saying that you're on the hook, but nobody else. Creditors are repaid from the estate prior to heirs getting anything.

In this scenario, the minor may be able to avoid responsibility on a statute of limitation defense if the creditor has not filed a lawsuit within 4 years of the breach (provided that no payments were made in the interim which would start the statute running all over again).