diff --git a/src/simplewallet/simplewallet.cpp b/src/simplewallet/simplewallet.cpp
index 791309f3b..bb9049015 100644
--- a/src/simplewallet/simplewallet.cpp
+++ b/src/simplewallet/simplewallet.cpp
@@ -485,10 +485,28 @@ std::string simple_wallet::get_mnemonic_language()
 bool simple_wallet::new_wallet(const std::string &wallet_file, const std::string& password, const crypto::secret_key& recovery_key,
   bool recover, bool two_random, bool testnet, const std::string &old_language)
 {
+  bool was_deprecated_wallet = m_restore_deterministic_wallet && ((old_language == crypto::ElectrumWords::old_language_name) ||
+    crypto::ElectrumWords::get_is_old_style_seed(m_electrum_seed));
+
+  std::string mnemonic_language = old_language;
+  // Ask for seed language if it is not a wallet restore or if it was a deprecated wallet
+  // that was earlier used before this restore.
+  if (!m_restore_deterministic_wallet || was_deprecated_wallet)
+  {
+    if (was_deprecated_wallet)
+    {
+      // The user had used an older version of the wallet with old style mnemonics.
+      message_writer(epee::log_space::console_color_green, false) << "\nYou had been using " <<
+        "a deprecated version of the wallet. Please use the new seed that we provide.\n";
+    }
+    mnemonic_language = get_mnemonic_language();
+  }
+
   m_wallet_file = wallet_file;
 
   m_wallet.reset(new tools::wallet2(testnet));
   m_wallet->callback(this);
+  m_wallet->set_seed_language(mnemonic_language);
 
   crypto::secret_key recovery_val;
   try
@@ -509,24 +527,7 @@ bool simple_wallet::new_wallet(const std::string &wallet_file, const std::string
   // convert rng value to electrum-style word list
   std::string electrum_words;
 
-  bool was_deprecated_wallet = m_restore_deterministic_wallet && ((old_language == crypto::ElectrumWords::old_language_name) ||
-    crypto::ElectrumWords::get_is_old_style_seed(m_electrum_seed));
-
-  std::string mnemonic_language = old_language;
-  // Ask for seed language if it is not a wallet restore or if it was a deprecated wallet
-  // that was earlier used before this restore.
-  if (!m_restore_deterministic_wallet || was_deprecated_wallet)
-  {
-    if (was_deprecated_wallet)
-    {
-      // The user had used an older version of the wallet with old style mnemonics.
-      message_writer(epee::log_space::console_color_green, false) << "\nYou had been using " <<
-        "a deprecated version of the wallet. Please use the new seed that we provide.\n";
-    }
-    mnemonic_language = get_mnemonic_language();
-  }
   crypto::ElectrumWords::bytes_to_words(recovery_val, electrum_words, mnemonic_language);
-  m_wallet->set_seed_language(mnemonic_language);
 
   std::string print_electrum = "";
 
@@ -564,6 +565,16 @@ bool simple_wallet::open_wallet(const string &wallet_file, const std::string& pa
     m_wallet->load(m_wallet_file, password);
     message_writer(epee::log_space::console_color_white, true) << "Opened wallet: "
       << m_wallet->get_account().get_public_address_str(m_wallet->testnet());
+    // If the wallet file is deprecated, we should ask for mnemonic language again and store
+    // everything in the new format.
+    if (!m_non_deterministic && m_wallet->is_deprecated())
+    {
+      message_writer(epee::log_space::console_color_green, false) << "\nYou had been using " <<
+        "a deprecated version of the wallet. Please proceed to upgrade your wallet.\n";
+      std::string mnemonic_language = get_mnemonic_language();
+      m_wallet->set_seed_language(mnemonic_language);
+      m_wallet->generate(m_wallet_file, password, m_recovery_key, false, true);
+    }
   }
   catch (const std::exception& e)
   {
diff --git a/src/wallet/wallet2.cpp b/src/wallet/wallet2.cpp
index 5f5197891..1ac3805a7 100644
--- a/src/wallet/wallet2.cpp
+++ b/src/wallet/wallet2.cpp
@@ -452,6 +452,7 @@ bool wallet2::store_keys(const std::string& keys_file_name, const std::string& p
   CHECK_AND_ASSERT_MES(r, false, "failed to serialize wallet keys");
   wallet2::keys_file_data keys_file_data = boost::value_initialized<wallet2::keys_file_data>();
 
+  // Create a JSON object with "key_data" and "seed_language" as keys.
   rapidjson::Document json;
   json.SetObject();
   rapidjson::Value value(rapidjson::kStringType);
@@ -459,11 +460,14 @@ bool wallet2::store_keys(const std::string& keys_file_name, const std::string& p
   json.AddMember("key_data", value, json.GetAllocator());
   value.SetString(seed_language.c_str(), seed_language.length());
   json.AddMember("seed_language", value, json.GetAllocator());
+
+  // Serialize the JSON object
   rapidjson::StringBuffer buffer;
   rapidjson::Writer<rapidjson::StringBuffer> writer(buffer);
   json.Accept(writer);
-
   account_data = buffer.GetString();
+
+  // Encrypt the entire JSON object.
   crypto::chacha8_key key;
   crypto::generate_chacha8_key(password, key);
   std::string cipher;
@@ -497,6 +501,7 @@ void wallet2::load_keys(const std::string& keys_file_name, const std::string& pa
   bool r = epee::file_io_utils::load_file_to_string(keys_file_name, buf);
   THROW_WALLET_EXCEPTION_IF(!r, error::file_read_error, keys_file_name);
 
+  // Decrypt the contents
   r = ::serialization::parse_binary(buf, keys_file_data);
   THROW_WALLET_EXCEPTION_IF(!r, error::wallet_internal_error, "internal error: failed to deserialize \"" + keys_file_name + '\"');
   crypto::chacha8_key key;
@@ -505,6 +510,7 @@ void wallet2::load_keys(const std::string& keys_file_name, const std::string& pa
   account_data.resize(keys_file_data.account_data.size());
   crypto::chacha8(keys_file_data.account_data.data(), keys_file_data.account_data.size(), key, keys_file_data.iv, &account_data[0]);
 
+  // The contents should be JSON if the wallet follows the new format.
   rapidjson::Document json;
   if (json.Parse(account_data.c_str(), keys_file_data.account_data.size()).HasParseError())
   {
@@ -514,9 +520,8 @@ void wallet2::load_keys(const std::string& keys_file_name, const std::string& pa
   {
     account_data = std::string(json["key_data"].GetString(), json["key_data"].GetString() +
       json["key_data"].GetStringLength());
-    std::cout << "A/C " << json["key_data"].GetStringLength() << std::endl;
-    seed_language = std::string(json["seed_language"].GetString(), json["seed_language"].GetString() +
-      json["seed_language"].GetStringLength());
+    set_seed_language(std::string(json["seed_language"].GetString(), json["seed_language"].GetString() +
+      json["seed_language"].GetStringLength()));
   }
 
   const cryptonote::account_keys& keys = m_account.get_keys();
diff --git a/src/wallet/wallet2.h b/src/wallet/wallet2.h
index 35e02ce28..10b4d6f3f 100644
--- a/src/wallet/wallet2.h
+++ b/src/wallet/wallet2.h
@@ -82,7 +82,7 @@ namespace tools
   {
     wallet2(const wallet2&) : m_run(true), m_callback(0), m_testnet(false) {};
   public:
-    wallet2(bool testnet = false) : m_run(true), m_callback(0), m_testnet(testnet) {};
+    wallet2(bool testnet = false) : m_run(true), m_callback(0), m_testnet(testnet), is_old_file_format(false) {};
     struct transfer_details
     {
       uint64_t m_block_height;