Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
All of your creditors are supposed to be included in your Bankruptcy papers, whether or not you are going to continue to pay them. However, the effect of adding a second mortgage is the mortgage will be discharged - so that you will not longer be legally liable to pay it - but the Bankruptcy cannot remove the second mortgage lien, which can only be done with a Chapter 13.
In any event, you can submit an amended Schedule D (mortgages are Secured Debts) at any time before your case is closed - even if you have already had your trustee meeting.
I think this is what you wanted to know. If not, please let me know.Thank you!
You are not being difficult! You are entitled to clarification of anything you don't understand.
1) What is the current market value of your house?
2) What is the balance on the first mortgage?
Current market value of home is about $240,000.00
First Mortgage is about $134,000 right now
But doesn't the first mortgage have to be satisfied before the 2nd mortgage company can try to foreclose on the home? Can they keep the lien indefinately once they are discharged from a bankruptcy?