How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

I previously filed a Chapter 13 bankruptcy which was dismissed

This answer was rated:

I previously filed a Chapter 13 bankruptcy which was dismissed (long story). I am now filing Chapter 7 pro se. I have 3 mortgages on my home; the 2nd and 3rd were included in the Chapter 13 payments. The first mortgage is current, the second was charged off and I was given a 1099; the third added in all the back interest since my dismissal and I have begun a payment plan with them.
I was told that if I file Chapter 7, the 2nd mortgage holder could come back on me and force the sale of my home if I don't make a payment plan with them even though they charged it off. My question is, is that true?

Hi JACustomer,

Is the house worth more or less than the current balance on the first mortgage?

Customer: replied 6 years ago.
More - it is worth more than the three mortgages combined

The second mortgage company can sell the mortgage to a collection agency, even though the mortgage has been charged off. The collection agency can get a judgment for that loan, and if the house is worth more than the first mortgage plus $100,000 (the Homestead Exemption in Idaho), the collection agency can force the sale.

However, the fact that you have filed a Chapter 7 Bankruptcy should not prompt the collection agency to pursue a judgment sooner.

Edited by cfortunato on 11/7/2010 at 12:53 AM EST
cfortunato and other Bankruptcy Law Specialists are ready to help you