Question: We filed for bankruptcy in 2006, we have not been discharged due to the fact we have not been able to pay the surplus income owing. Our Trustee determined there was no equity in our home. We kept our mortgage payments up to date and now it is time to renew our mortgage. How can not being discharged effect us with renewing our mortgage? and what action can be taken against us for not being discharged?
Answer: If the mortgage company does a credit check prior to sending your renewal notice, they may discover that you are an undischarged bankrupt, and that may effect your ability to renew your mortgage. It is also possible that since your mortgage payments are up to date they may simply automatically renew your mortgage.
Either way, it is strongly recommended that you find a way to complete your bankruptcy, perhaps by beginning to make monthly payments against the amount that is owing, since eventually being an undischarged bankruptcy will have a very serious negative impact on your ability to borrow in the future.