Question:

After job loss and high debt load we are considering bankruptcy. My husband is finally employed again though he makes much less. We have modified our 2 mortgages which will be final this month.

My question is: will we lose our home (no equity)? We are most definite in that we want to stay. At least we are positive about that part. I was told by an attorney we had to reaffirm or surrender. He strongly encouraged us to walk and now we are scared to file for fear of losing our home. If we file bankruptcy can a lender foreclose even if we stay current? Because we are under water could a trustee deny a reaffirmation?  We are people that truly should file but we do not want to risk our home. I am not familiar with any of this. It is exempt but I know it is on an individual basis as to how the case plays out. I know they have to assess whether or not we can afford it. Is that settled before court or can that backfire on us at the hearing? All debt is unsecured except the house. Thank you so much for your help. (more…)