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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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In November of 2008 I filed Chapter 13 bankruptcy. My 5 year

Resolved Question:

In November of 2008 I filed Chapter 13 bankruptcy. My 5 year plan was approved in Feb 09 with a monthly repayment of $157. Well this year I received a tax refund and bonus of $29,000 which was paid to the court. Today I received a letter from the Trustee stating that the case had been sent to the closing department and any over payments would be refunded. The secured debt was for two homes, one primary and one rental. The primary had a second mortgage from a different company than the first.

My questions are:

1) Can the secured creditors object to the closing of the plan?
2) The houses are worth less than the secured balances. We are not keeping the homes, in fact we have moved out. At what time during the bankruptcy process can they claim unsecured debt?
3) I know the banks are not going to recover the balance in any sales, what recourse do they have since the chapter 13 has discharged the debts?

Thanks,

David
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

Hello,



1) Can the secured creditors object to the closing of the plan?

No, the creditors can only object to the confirmation of the plan.


2) The houses are worth less than the secured balances. We are not keeping the homes, in fact we have moved out. At what time during the bankruptcy process can they claim unsecured debt?

They would need court permission to amend their claims to include unsecured debt at this time.

 


3) I know the banks are not going to recover the balance in any sales, what recourse do they have since the chapter 13 has discharged the debts?

They do not appear to have any recourse. Your debts are discharged with the completion of the plan.

 

Congratulations on sucessful completion of your plan.

Ellen and 4 other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.

So the secured creditors can make a claim to the court during the closing process for any loss? If this is the case, my plan was at 14%. Would the "now unsecured" claim be at that rate or would a new rate be determined?

 

What I am really trying to get at is what are the chances for plan to close? Your best guess????