Reaffirmation Agreements and Chapter 7 Bankruptcies
I have a client who filed a Chapter 7 and got her discharge over a year ago. In her bankruptcy she listed Wells Fargo as a creditor and stated she wanted to reaffirm the debt. However, Wells Fargo never provided her with a Reaffirmation Agreement. Now, her credit report is showing her mortgage as discharged in the bankruptcy. She is upset because she now feels like she is paying her mortgage each month, but not getting credit on her credit report.
She has called Wells Fargo, and they erroneously told her it is the responsibility of her attorney to prepare the Reaffirmation Agreement. The Debtor is calling our office wanting to know why we never prepared the Reaffirmation Agreement. Every person in our office has explained numerous times that we do not prepare Reaffirmation Agreements. Reaffirmation Agreements are voluntarily contacts between her and the mortgage company and we cannot force them to enter into one with her. Also, the Reaffirmation Agreement will lay out the terms of the contact with how much is left to pay on the mortgage, the interest rate, and the payment amounts. Our office might have a rough estimate on the numbers, but we do not have the exact amounts to put in the Reaffirmation Agreements.
All of this has been explained to the Debtor, but then she calls Wells Fargo and once again they tell her we are the one who failed to prepare a Reaffirmation Agreement. I don’t know any other way to explain to my client the process and purpose behind a Reaffirmation Agreement so she can understand it is Wells Fargo’s decision whether or not they prepare a Reaffirmation Agreement and not ours.
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