Legal Question in Bankruptcy in Connecticut
2nd mtg company pursuit after CH 13 filing
I had filed Chapter 13 bankruptcy and the plan was approved in April 1999. At that time the only proof of claim that was filed against me was for my 1st mortgage and for the IRS. Previous to the Chapter 13, I had filed Chapter 7 bankruptcy jointly with my ex-hsuband. At this time, I have been paying the Chapter 13 plan as well as the first mortgage. My dilemma is this- the 2nd mtg company ( which was notified of the Ch 7 filing) is now pursuing me 2 1/2 years later for their money !. They are continually harassing me via a credit collection agency. The last contact I had with the 2nd mtg company was back in July of 1999 when I told them I was in bankruptcy procedures. This has been followed by telephone calls that were rather threatining I might add. I had an attorney ( the same one for Ch 7 and for Ch 13) I had informed him of each response I rec'd.. he kept saying its been discharged dont worry about it. Well guess what NOW I am worrying about it.. He even went so far as to say I may have to pay this amount back and the collection company threatened to foreclose !!! PLEASE HELP .. my attorney wont return my calls !!!
1 Answer from Attorneys
Re: 2nd mtg company pursuit after CH 13 filing
There are some facts that are missing to your question. But, the fact that you filed a Chapter 7 and received a discharge, discharges the holder of the second mortgage from suing you on the note but it does not avoid the mortgage. They can still foreclose on the mortgage. However, because you are now in a Chapter 13, there is a bankruptcy stay (injunction) in place to stop the collection agency from placing collection calls to you (or otherwise harassing you).
Normally in a Chapter 13 in Connecticut, the Trustee files a proof of claim for a mortgage holder that fails to file its own proof of claim. The missing fact is whether you attorney filed a motion to determine that the second mortgage was unsecured. If he or she did and the Bankruptcy Judge determined that the second mortgage is 100% unsecured then once you complete your Chapter 13 case, you can file certain documents on the land records to avoid the mortgage. If the second mortgage is secured (even in part), then when your case is done, you will still have to pay the mortgage. If the second mortgage is secured you will have a problem that should be fixed now.
I hope that this helps, with the missing information in your case, I can be more specific in my answer.
Joel Grafstein
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