Legal Question in Bankruptcy in Pennsylvania
A question about Title 11 section 502 and 506
There is currently a judgment against my house for 237,000,which was recently ordered. The house is worth 220,000. Part of the judgment is interest charges. My house is currently scheduled for a Sheriff's Sale on October 3,2006. I plan to file a motion to postpone the Sheriff's Sale on the grounds that the judgment is defective because the interest charges exceed the value of the house, which is not allowed under section 506 (b), if I understand the law correctly.
I am acting as a Pro Se lawyer in this case. Am I correct that interest is not allowed to be charged under sections 502 (b)(2), or 506 (b). Also, what is the difference between 502 (b)(2) and 506 (b) as far as interest be charged by a first mortgage company with a secured lien against the house.
I received a Chapter 7 Discharge in March 2004. Section 506 (b) seems to be saying that any interest charged over the value of the house is not allowed. I must make sure that I am correct about this before filing a motion to postpone a Sheriff's Sale. Under Pennsylvania law a vaild judgment is needed to have a Sheriff's Sale. I should be able to stop the Sheriff's Sale if I can prove that the judgment is defective because of the interest charged.
1 Answer from Attorneys
Re: A question about Title 11 section 502 and 506
Neither one of those sections were applicable to your, presumably, no asset case. Also, I assume the judgment is by the mortgage company. In that event, there is very little likelihood that your petition would be granted. The mortgage company is entitled to whatever the loan documents state, regardless of the value of the house.
If I am missing something, I am more than happy to discuss this further on a free initial basis.
Feel free to call or E-mail me.
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