Very complicated 2nd mortgage & Chapter 7 issue....

My husband & I filed Chptr 7 in 1999. In 2000 I file for divorce, Chap 7 goes through in my name only because he doesn't show up to court.

I had excellent credit before this, but have never been able to recover. Every time I got ahead financially a huge set-back would occur - expensive car/home repairs, job loss, periods of no child-support coming in.

Anyway...we had a 1st & 2nd mortgage. Neither debt was reaffirmed, but 1st was always willing to work w/me. I've been on countless repayment plans and am often on the brink of foreclosure. Yet somehow I always manage to work something out with 1st mortg.

2nd mortg is a different story. The loan was for 25k, and I stopped paying in 2003 due to job loss. Upon my contacting them to work something out they kept telling me that I did not own the debt - that it was discharged - and any payments I made were voluntary. Upon discussing this with Consumer credit counseling I was told they would not come after me because it was a discharged debt - but somehow this doesn't seem right to me.

I've checked my property records and know that 2nd mortg. has not yet placed a lein against my house....but could they and would they in the future? And how about the fact that the debt was only discharged in my name? Husband's name is still on the loan - but he hasn't been paying on it either.

Any idea of what 2nd mortgage companies do in situations like this??