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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I live in Illinois and filed a chapter 13 in April 2011 to

Resolved Question:

I live in Illinois and filed a chapter 13 in April 2011 to protect my 6 flat home from foreclosure. Citibank sold my mortgage to JDI Realty without notifying me or the bankruptcy trustee. JDI called me and I asked them if they were aware of the chapter 13 protecting my property they said they were not. Now a new entity Little Town LLC has applied to the bankruptcy court for a transfer of claim to be put in place of Citibank. Little Town has not contacted me directly and neither have my bankruptcy lawyers. what is the significance of this?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

Once JDI Realty was notifed thare was a Bankruptcy in progress, and since you do have an attorney, JDI Realty is not allowed to contact you directly - all notices must be sent to your attorneys.


I think this is what you wanted to know. If not, please let me know.

Thank you.

Customer: replied 5 years ago.
I am concerned beancause my attorney has not responded to me directly either. does Little Town LLC have to follow the rules of my chapter 13?
Expert:  cfortunato replied 5 years ago.
When is the hearing for the motion to substitute the new creditor for the original mortgage company?
Customer: replied 5 years ago.
the notice said Citibank had until 2/10/2012 to respond to the notice before a court date could be set.
Expert:  cfortunato replied 5 years ago.
1) The fact that you have not yet been notified by your attorneys is not a reason to be concerned, but they should notify you at some point before the date of the court hearing.

2) Yes - the new creditor is also bound by the Bankruptcy court, and must abide by anything that was already set up with the original mortgage company. The new creditor essentially "steps into the shoes" of the original creditor.
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