Legal Question in Bankruptcy in Kansas

Foreclosure/ Bankruptcy Question

I have a home that was included in my Bankruptcy CH7 in 1998. The first mortgage was re-affirmed and there was a second mortgage taken out in Nov. 1999. If I were to let the property be foreclosed on what would happen with the first mortgage since it was included in the bankruptcy. Do they get paid first and then the second mortgage or does the second mortgage get paid first out of the proceedings since the first mortgage was filed in the bankruptcy.

Thanks,


Asked on 5/20/03, 11:52 am

1 Answer from Attorneys
James Rupper Powell, Brewer & Reddick

Re: Foreclosure/ Bankruptcy Question

If the first mortgage was reaffirmed, then it would be paid first from the sell of the property and then the second. It's entirely possible for you to have two debts arising from the repossession. You are not eligible for bankruptcy and its possible that both would sue you for any deficiency arising from the mortgage debt. You may be eligible for a Chapter 13 bankruptcy or a work out with the banks. If your in the Wichita area, you may want to contact our firm 316-265-7272.

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Answered on 5/20/03, 12:07 pm


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