Legal Question in Bankruptcy in New York

Chapter 13 bankruptcy disputed debt

A bank wants to foreclose on an apartment due to alleged debt of lawyer fees of which the part awarded by a court has already been fully paid.

Person filed chapter 13 bankruptcy to avoid foreclosure and listed the debt as an alleged debt (disputed debt), and got a temporary stay.

How does the bankruptcy court decide whether this alleged debt should be included in the repayment plan or not? Would the bankruptcy court judge on this matter or would this need to be determined separately in another court? If yes, which court? What would be the procedure?


Asked on 6/18/08, 1:53 am

2 Answers from Attorneys
jeffrey lazroe Jeffrey A. Lazroe attorney at law

Re: Chapter 13 bankruptcy disputed debt

Your mortgage usually contains a clause that the person being foreclosed upon is responsbile for any attorneys fees or costs associated with the foreclosure. The bankruptcy court could decide the amount of legal fees that the bank would be entitled to - this would be through a hearing.

If you need any further information - please feel free to contact this office.

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Answered on 6/18/08, 10:44 am
Max Rosenberg Rosenberg,Whewell, & Hite, LLC

Re: Chapter 13 bankruptcy disputed debt

This matter can be addressed inside the bankruptcy court by an application for an adversary proceeding to determine the validity of the debt. Court forms can be found on line

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Answered on 6/18/08, 11:03 am


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