Therefore, there is a good chance that lenders will not lock your home after filing for Chapter 7 bankruptcy in Georgia if you make monthly payments on time and in progress, even if you have not signed a confirmation agreement. For a confirmation to be valid, you must sign a “confirmation agreement” and be filed in bankruptcy court. It must also be approved and signed by your OR bankruptcy lawyer must be approved by a bankruptcy judge at a “confirmation hearing” that you must participate in. My Georgia bankruptcy clients often ask if they should keep their mortgage and are often surprised by my answer. Confirming or keeping your mortgage in Chapter 7 is not always a good idea, especially if you stay in mortgage payments. “A lot of people know that if you file for bankruptcy, you can choose to confirm your car loan and most people do because you need a way around it. The mortgage is another story and here`s why: If this happens, the bank would probably take your home to pay for its loss. To avoid this, you can submit a confirmation agreement stating that you will continue to pay the loan as if you had never filed a bankruptcy filing. It is in the borrower`s best interest to go through legal proceedings, such as confirmation. B, when it comes to solving or managing financial obligations. But that is precisely why you would prefer not to sign such a confirmation agreement.
If, at some point, you could no longer pay the mortgages, which led the first mortgage lender to close the house, the second and/or the third mortgage lender would most likely be excluded. If there was NOT a timely filing of a confirmation agreement as part of the bankruptcy proceedings, you would not be liable. But if it is a confirmation agreement filed, you would be liable for the entire second or third mortgage balance. (Although confirmation agreements may be submitted in chapter 7 and Chapter 13 “Debt Adjustment,” they are primarily used in Chapter 7. In Chapter 13, secured claims are generally satisfied before the end of the case. Confirmation is not required, as no additional debt must be confirmed.) You need to understand what a confirmation agreement is.