Legal Question in Bankruptcy in Connecticut

Cram Down?

A few years ago I filed Chapter 7. I did not include my home and car in the bankruptcy, mostly credit cards and medical bills. When I sold my house this past summer, it came up that there was a lien on my house from a credit card company that was included in the Chapter 7 petition. The closing attorney agreed to resolve this matter after the closing, keeping money in escrow. My question is, should that debt have been discharged during my bankruptcy and the lien removed? I have spoken to my attorney several times on the phone,and he doesn't want to admit any wrongdoing on his part.I was told he should have discussed the cram down process with me.Now he wants to charge me $1200. to fix it!I feel I should not have to pay because this is something he should have told me about from the beginning.He also said that there is a chance that it won't work.Can you please tell me the best way for me to resolve this situation. Thank you for your attention.

--name removed--Achilli


Asked on 2/25/02, 8:02 am

1 Answer from Attorneys
Joel M. Grafstein Grafstein & Arcaro, LLC

Re: Cram Down?

The debt, although listed in your bankruptcy would be discharged, however, that is just part of the story, it is still a secured debt and your attorney will have to file a motion to reopen your case (with a filing fee of $155.00)and then he will have to file a motion to avoid this lien if it impairs your homestead exemption. The Courts in Connecticut are generally liberal in permitting the case to be reopen and then filing a motion to avoid liens under 11 USC Section 522(f). I am not going to express an opinion as to the reasonableness of the legal fee.

I hope that this helps.

Read more
Answered on 2/25/02, 10:08 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Connecticut