Will I be responsible for a deficiency balance after a chapter 13 bankruptcy? 13 Answers as of March 21, 2011

I am filing chapter 13. We are surrendering our motorhome as part of the chapter 13. The bank just called and said I may get a Deficiency Balance letter on the difference between what it is sold for at auction and what the loan balance is. Will I be responsible for this deficiency?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You should not be liable for that. You must have received a form letter generated in the foreclosure process that does not take into account the bankruptcy.
Answer Applies to: California
Replied: 3/21/2011
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
Based on the information you provided, if your Chapter 13 plan is approved, you complete payments on the Chapter 13 plan, and receive a discharge from the court,you will not be liable for any deficiency on the motor home loan.
Answer Applies to: Illinois
Replied: 3/17/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
The deficiency, whatever it is, should be listed as an unsecured claim on either the initial Schedule F, with amount unknown if you don't have it, or on an Amended Schedule F, if you have filed prior to the bank letting you know about the deficiency. Then it will be paid off ratably in the Chapter 13, and discharged at the end of it. It will not affect the amount of your Chapter 13 payments, which are based on your disposable income. It will only reduce the amount the other unsecured creditors get.
Answer Applies to: California
Replied: 3/17/2011
Cohen & Kendziorra, P.A.
Cohen & Kendziorra, P.A. | Robert S. Cohen
You include the deficiency claim in your bankruptcy and once the case is over and your debts discharged then this claim is also discharged.
Answer Applies to: Florida
Replied: 3/17/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Absolutely not. That will have to be part of the Chapter 13 case and they need to file a claim for the unsecured portion (deficiency) if they want to share in the payments. Either way, if you get a discharge, you will be protected.
Answer Applies to: California
Replied: 3/16/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If you are eligible for a discharge and you see the plan through to the end, you will not be liable for an deficiency balance.
    Answer Applies to: Indiana
    Replied: 3/16/2011
    The Law offices of Cheryl L. Sommers
    The Law offices of Cheryl L. Sommers | Cheryl L. Sommers
    Not if the motor home is being discharged in your bankruptcy and you do not reaffirm the debt. Even if it is included, and I'm assuming it is, the bank still has to notify you of any deficiency. Hope that helps!
    Answer Applies to: California
    Replied: 3/16/2011
    The Law Office of John T. MacDonald Jr., PLLC
    The Law Office of John T. MacDonald Jr., PLLC | John MacDonald Jr.
    It depends. If you file chapter 13 and follow the plan to completion and get a discharge then any deficiency will be discharged as well. However, if the plan fails then you will need to seek a hardship discharge. Please feel free to call me if you have any questions.
    Answer Applies to: Michigan
    Replied: 3/16/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    In the event this debt was listed in your Chapter 13 it should be discharged at the end of your plan. It will depend on how your Bankruptcy and Plan were filed.
    Answer Applies to: New Hampshire
    Replied: 3/16/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    That can be included in your chapter 13 case.
    Answer Applies to: California
    Replied: 3/16/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Not if you complete your Chapter 13 plan successfully and receive your discharge. Besides, the bank should not be calling you if you already have an active Chapter 13 case, unless you're trying to represent yourself. If you are trying to represent yourself, you should not do it.
    Answer Applies to: California
    Replied: 3/16/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    NO, NO, NO (but they are entitled to file a claim in the Chapter 13 case for the deficiency and be entitled to a pro-rata share of the amount you are going to be paying tall the unsecured creditors in the Plan, if any.
    Answer Applies to: California
    Replied: 3/16/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    If you have an attorney you need to take their advice. I cannot give you advice when you have hired an attorney. That is why you are paying them.
    Answer Applies to: Alabama
    Replied: 3/16/2011
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