QUESTION
What do I do if I still owe money after a chapter 13 bankruptcy?
Asked on Jun 17th, 2012 on Bankruptcy - Michigan
More details to this question:
Our Chapter 13 bankruptcy was discharged a few years ago, but our home equity lender sent us a bill for almost $9,000.00 that they claim we still owe. This includes many fees which apparently accrued while we were in bankruptcy. They say that the loan left the draw phase and went into the repayment phase while we were protected by Chapter 13 and the amount owed changed, yet the trustee paid the old amount every month. We, of course, received no communication from the lender while in bankruptcy about this. How can we be held liable?
6 ANSWERS
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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You can pay arrears in a chapter 13 plan, but ongoing payments must be made. Ask for a breakdown of the alleged back payments.
Answered on Jun 28th, 2012 at 1:31 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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This does not seem proper. If there was a payment on the arrears each month that should have brought your loan to date as of the completion of your chapter 13. You should talk to your former attorney.
Answered on Jun 27th, 2012 at 2:43 PM
2 Awards
I recommend you contact legal counsel. This may be an illegal procedure.
Answered on Jun 27th, 2012 at 2:23 PM
If you were making the payments in a Chapter 13 proceeding, you most likely reaffirmed the debt. In other words, you agreed to pay the debt, it is not discharged.
Answered on Jun 27th, 2012 at 2:19 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You need to contact the attorney who filed the chapter 13 for you. If you did it without an attorney, you need to get one on this issue immediately.
Answered on Jun 27th, 2012 at 2:12 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would have to examine all of the paperwork involved. Generally, in a bankruptcy, unless you have agreed to a reaffirmation of the debt there should be no deficiency. You should certainly talk to your previous bankruptcy attorney and/or the trustee. Your issue may be that although they potential deficiency has been compromised or eliminated by your bankruptcy action that they own equity lender did retain his security interest in the real estate and therefore has a right to foreclose for the remainder of his debt. In summary, your questions cannot be answered definitively without additional information.
Answered on Jun 27th, 2012 at 1:54 PM