QUESTION
What is the reason for this order from bankruptcy court?
Asked on Jan 19th, 2015 on Bankruptcy - Michigan
More details to this question:
I filed chapter 13 bankruptcy. The order allowing movant to commence, prosecute and complete through judgment, sale. A mortgage foreclosure against the property. Movant shall not seek an in persona judgment against the debtor(s). I made all my required bankruptcy payment.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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This sounds like a multiple choice test on elementary bankruptcy law. The reason for the order is that your Chapter 13 elected to surrender the property. Since you aren't keeping the property or making the payments for it in your plan; there is no reason for the bankruptcy court to stay the foreclosure proceedings.
Answered on Jan 22nd, 2015 at 4:40 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Someone did not respond to a motion for relief from stay, or, you lost the motion. It means that the mortgage lender can complete the foreclosure but cannot get a deficiency judgment.
Answered on Jan 21st, 2015 at 12:58 PM
Derek W. Freeman
It sounds like you haven't made all your mortgage payments. The order from the court allows your mortgagor to foreclose on the property, but prohibits them from seeking payment of any deficiency from you. You have to specifically include your mortgage in the bankruptcy plan if you want your bankruptcy payments to be applied to your mortgage. If you didn't do this, you have to make mortgage payments separately. And if you haven't been making mortgage payments, your mortgage lender has the right to foreclose, as long as they get an order from the bankruptcy court allowing it.
Answered on Jan 21st, 2015 at 11:52 AM
The reason for this order is likely because you did not show the court that you were able to pay the mortgage and make up all past due amounts or that you did in fact begin doing just that. You need to do just that in order to be able to keep the property. After all, filing bankruptcy only delays a foreclosure, it only stops the foreclosure if you can and do pay the debt.
Answered on Jan 21st, 2015 at 11:50 AM
Of course any order has to be taken in the context of an individual's entire case. Without knowledge of your case, what I am stating is an educated guess. That being said, this order was entered most likely as a result of the creditor's attorney's motion to lift the automatic stay. The order is allowing the mortgage company to move forward with a foreclosure of the property. The language that you included recognizes that the creditor's right to collect relates to the property only. In other words, they cannot pursue a judgment against you because of the bankruptcy filing.
Answered on Jan 21st, 2015 at 10:05 AM