Lone Oak, TX Bankruptcy Law Firms & Lawyers

You should file for bankruptcy immediately if there is no hope that your situation will change. Even if you don't appear in court and the bank wins the lawsuit, you can still file for bankruptcy protection later on.

There is not a way to remove a bankruptcy discharge from your credit report early. The rational for this is, since you got the benefit of the discharge you also have to deal with the consequence of filing.

The following answer applies to California jurisdiction only. I don't know of any local bankruptcy attorney who would condone or suggest to a client that they reaffirm a mortgage debt. It is not in your best interest to do that so the fact that you did not reaffirm is not a bad thing. If at some point you can't afford to make the payments anymore because you have filed and received a discharge in bankruptcy AND because you have NOT reaffirmed the debt you can walk away from the property. The only remedy the creditor(s) have is to take the property, they cannot sue you for any deficiency or attempt to collect from you. The protection of the bankruptcy discharge makes any such collections illegal. A loan modification, should you get one, would not change this result. Refinancing however would because when you refinance you get a new loan and in your case it would be a loan acquired after the bankruptcy had already been filed. Hope this perspective helps. Take care.