Question

we just finished a chapter 7 bk and kept our home. when we pulled our credit report, it says the house was included in the bk. we now wished it was in the bk because of repairs needed. if our credit report says it was, does that mean the house might have been included?



Answer

Very likely, yes, your house was included in your bankruptcy. Let me explain.



A house has two debts, the mortgage lien and the personal loan. The mortgage lien gives the lender the right to foreclose if no payments. That is not affected by a bankruptcy.



The personal loan gives the lender the right to sue for a deficiency after a foreclosure (although this may not exist in California; I don't know). The personal loan is discharged in the bankruptcy, which is what the credit report is saying.



You can choose to keep your home by continuing the payments, or you can choose to walk away from it.



The only exception would be a "reaffirmation agreement", a special paper signed by you and filed with the bankruptcy court before the discharge. The paper is also either signed by your lawyer or there is a court hearing. It's not commonly done, but only your lawyer could tell you for sure.