In Texas do you have to reaffirm to keep secured property?

[chris7]

What is the name of your state? Texas
I was under the impression (from the NOLO bankruptcy book) that in Texas you must reaffirm secured debt in order to keep the property. Apparently in other states you can just keep current on payments without legally reaffirming. However I am getting conflicting information today from our lawyers paralegal (yes, I will talk to our lawyer tomorrow). She is saying that in Texas you do not have to reaffirm to keep the property. Is anyone out there from Texas, or familiar enough with the Texas statutes, to have any input?

 

[3039150]

Reaffirm Secured Debt?

Texas, Eastern District

Greetings I just passed through and thought I would respond. The answer depends on what the local rules are in your district. The general rule is that the debt either has to be reaffirmed or surrendered anywhere within the 5th Circuit which includes Texas.

In reality there are many mortgage companies that never send or request a reaffirmation agreement and in those case you simply continue to make voluntary payments and they will not foreclose as long as the note is current.

Other creditors will demand a reaffirmation and then you have to decide whether you really want the item or simply want to surrender along with the debt.

I hope this answers your questions if not post again and I will try to clarify.

 

[chris7]

thanks for responding...additional info

Thanks for responding. The two items in question are a home mortgage and a car loan, both of which we had fully expected to reaffirm. My husbands bankruptcy is the result of a failed small business (w/ a SBA loan) as opposed to credit card debt... So our personal finances are clean and current and the idea of discharging the debt for our home and car leaves a bad taste, even though we would continue to pay them. My husband actually left the business 8 months ago (his partner/brother continued to run it and it just went out of business 2 months ago) and has a job, so keeping this debt does not present a hardship. I have read the pro's and con's of reaffirming and can't imagine why we would not reaffirm, even if that's an option. I'm open to all opinions and clarification if I'm not looking at this right. Thanks