You are here:
- Home
- Business
- Corporate Law
- Bankruptcy Law
- filing chapter 13 after chapter 7 or conversion
Bankruptcy Law/filing chapter 13 after chapter 7 or conversion
Advertisement
Question
QUESTION: Hello Mr.Markus
I was hoping you could shed some light on my situation.
I am behind on my 1st mortgage payment 4 months.
I am behind on my second mortgage payment 3 months.
I filed a chapter 7 that was discharged on January of 2008.
I was hoping to file a chapter 13 to save my house.
1st mortgage I want a repayment plan.
2nd mortgage I want stripped.Both mortgages were included in the chapter 7 and discharged but not reaffirmed.
House value is about 340,000.I owe 1st mortgage 370,000 and 2nd mortgage I owe 96,000.I am working and collecting rent from my tennants.I live in New Jersey.The question is
can I be Successful in what I am trying to accomplish.
The 2nd mortgage is now unsecured debt and was discharged in the chapter 7. Can I now get it stripped with a chapter 13.
ANSWER: That is a great question and one we have been discussing in our district lately. At least one judge here has stated it would be bad faith to do that, so it's really going to depend on the judges in your district. You need to consult with a bankruptcy attorney in your area about the ability to strip liens in a Chapter 13 case after discharge in a Chapter 7. In my opinion, you should be able to do it, but I'm not the judge.
---------- FOLLOW-UP ----------
QUESTION: Thanks for the quick response.
ok lets say I fail at striping (even though I think falling home values is good faith).Do you think I would be successful at setting both mortgages up for a repayment chapter 13.If I have the income to do so.
Thanks Again
Franco
There shouldn't be any problem doing that. The "bad faith" issue on the lien stripping is that if you have no payments to make (because all your unsecured debt was discharged in the Chapter 7 case) then it's not really a Chapter 13 case and, therefore (the judges may argue) you can't lien strip. If you're making payments to catch up on arrearages on the mortgage, that's perfectly acceptable. (But again, these things do vary from jurisdiction to jurisdiction)
- Add to this Answer
- Ask a Question
Questioner's Rating
| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | No Comment | ||
Related Articles
Bankruptcy Law
Answers by Expert:
Mark J. Markus- California Bankruptcy Attorney
Expertise
Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.
Experience
Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on
Also visit our Los Angeles bankruptcy blog for interesting articles and much more.
Organizations
Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)
Publications
Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)
Education/Credentials
J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here
Awards and Honors
AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau
©2012 About.com, a part of The New York Times Company. All rights reserved.