How do we take care of your deficiency balance after we file for bankruptcy? 16 Answers as of June 26, 2013My husband and I are filing for Chapter 13. We own two houses and can not keep up with payments and our mounting credit card debt. We are going to stay in one house and "let the other house go" as part of the Chapter 13. If we repay the trustee the balance of all our debt in 3 years and the BK is discharged, can the mortgage company come after us for the deficiency balance on the house that we let go?
Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
I don't know where you got the information you have but this all is not in line with what you do with a Chapter 13. When you file for bankruptcy it should create a FRESH START no matter what. As long as you do it the right.
Answer Applies to: New York
Apple Law Firm PLLC | David Goldman
If the documents are filed correctly and you complete your plan, it can be structured so that you will not be responsible for the debt. (Assuming there was no fraud committed when you applied for the loans) We are seeing an increasing number of banks going after individuals in bankruptcy who falsified income or misrepresented their financial condition on their loan applications.
Answer Applies to: Florida
Law Offices of Joseph A. Mannis | Todd Mannis
Are you sure you want to be filing Chapter 13? Doesn't sound like you need to, but hard to tell from the limited facts you have given. Chapter 7 might be a better option, but again, need more facts to be sure. Have you spoken to a bankruptcy attorney about this? If not, I think you probably should.
Answer Applies to: California
Ashman Law Office | Glen Edward Ashman
First of all, most Chapter 13s must be 5 years. A 3 year plan is probably going to get rejected. (There are exceptions but they are unusual). A deficiency in a mortgage is an unsecured claim (if made) and your plan needs to consider that. I am currently handling a similar issue for a client and these cases are difficult. You need a lawyer, and let the lawyer decide what will work.
Answer Applies to: Georgia
Melinda Murphy Dionne, PC | Melinda Murphy Dionne
The filing of a bankruptcy case will wipe out the credit card debt and the deficiency amount owed. You must provide for payment of the debt in your Chapter 13 case for the debt to be discharged. "Providing for payment" does not mean that the debt must be paid in full. In a Chapter 13 case you are required to pay the greater of (1) the amount of your disposable income times 36; or (2) the amount the creditors would receive if your case was administered as a Chapter 7 case. Disposable income for this purpose is defined as the amount of income you have left after the payment of your necessary living expenses. If your disposable income only allows for repayment of 50% of your unsecured debt, your case would be confirmed as long as your pay the required amount.
Answer Applies to: Alabama
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
If you receive a discharge in your Chapter 13, your personal liability on the mortgage note and successive deficiency, if any, will be extinguished.
Answer Applies to: Indiana