Question About Mortgage Lender & Filing Chapters 13 & 7
I am sorry to bother the board with this but I need to correct my credit reports ASAP and don't want to approach this lender without some foreknowledge. My attorney is in court all day and unlikely to call us. My nemesis mortgage lender was to be stripped down in our Chapter 13 to the tune of $36,000. However, we converted to a Chapter 7 as some of you know. This lender's representative received all the paperwork, including the abandonement of property. The other two lenders know the house is included in the BK. However, this lender #3 did nothing. Did not request a lifting of the automatic stay like the other two did, no letters to correct the default (I talked to them and they updated their files--what lousy record keeping!). Absolute silence. On my husband's report, they list as included in a BK 13. On my credit report, it is listed as in collections, over 120 days late to the tune of $34,000. Knowing how sneaky and devious they can be, I just have a feeling they are lying in wait. I want to dispute this account but don't know what happens to a stripped down mortgage if a BK 13 is converted to a BK 7. If I dispute without having enough informaton under my belt, it could turn nasty. Would appreciate any replies. And if this lender thinks we are going to accept our portion of the nationwide settlement they offered, well, they need to think again. We don't give up our right to sue for a JUST settlement that easily. I feel like we are about to take on the monster. It is a David vs. Goliath situation, but we will not be intimidated by any predatory lender.
It depends on the language of your strip down order. Most say that you have to complete the Chapter 13 before the strip down becomes "final," that is, before the liens have to be released. If this is the case, then, conversion to the Chapter 7 would reinstate the third mortgage lien.
| Bankruptcy FAQ Main Page | Do It Yourself Bankruptcy | Cost Of Bankruptcy | Business Bankruptcy | Bankruptcy Types | Bankruptcy Procedure | Bankruptcy Mortgage | Bankruptcy Law | Bankruptcy Info | Bankruptcy Forms | Bankruptcy Debts | Bankruptcy Court | Bankruptcy Chapter 11 | Bankruptcy Chapter 7 | Bankruptcy Alternative | Bankrupcty | Bancruptcy | Personal Bankruptcy Laws | Personal Bankruptcy | Life After Bankruptcy | Filing Bankruptcy |