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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17237
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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We had filed for Chapter 13 Bankruptcy several years ago because

Customer Question

We had filed for Chapter 13 Bankruptcy several years ago because our business was hit hard by the recession and we no longer made as much as we had been prior to the recession. In the meantime we were working on getting our first mortgage modified while we were under the Chapter 13 Bankruptcy stay. We were granted a loan modification several weeks ago and have already made our first trial payment. I am inclined to let the Chapter 13 go because we included a lot of debt from our business which we are now thinking we will just let whither and die and free ourselves of the burdens of problems that were caused by the recession. We only have a couple of things that I feel need to be addressed if we did let the Chapter 13 go. I would be concerned with the payments for one of our automobiles which we were paying in the Chapter 13 plan, as well as our second mortgage. Our first mortgage is now reworked and should be fine as long as we continue to make our payments. Any suggestions as to how to make sure these other debts are secured? Should I call up both the Auto and Mortage holders and try to re-up on both of those loans? Just don't want to put us in harms way now that things are starting to work out.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 3 years ago.

WALLSTREETESQ :

In terms of a secured creditor, a car loan and home mortgage would be secured,

WALLSTREETESQ :

secured only means that if you fail to pay they can take the property, both would be secured,

WALLSTREETESQ :

the second mortgage holder may not choose to foreclose if their is a first mortgage,

WALLSTREETESQ :

I would contact the lenders of both and make sure they will not stop accepting payments if you are not ina chapter 13,

WALLSTREETESQ :

the car lender in most cases will be the harder party

WALLSTREETESQ :

as they may try to take the car if payments are not all up to date,

WALLSTREETESQ :

You could consider letting the chapter 13 go,

WALLSTREETESQ :

and if the lenders try to take the car,

WALLSTREETESQ :

you can refile a chapter 13 and not include the business debts,

JACUSTOMER-mztcl56r- :

What about the second mortgage?

WALLSTREETESQ :

the second mortgage holder will be considered secure,

WALLSTREETESQ :

however if equity is limited they will not foreclose,

WALLSTREETESQ :

in most second mortgage cases, they will accept some payment plan or modification,

JACUSTOMER-mztcl56r- :

Okay, thanks so much!

WALLSTREETESQ :

good luck, also in a chapter 13, you could lien strip a second mortgage,

WALLSTREETESQ :

if the second mortgage is 100% underwater,

WALLSTREETESQ :

meaning if the home is worth $500,000 and the first mortgage is $600,000

WALLSTREETESQ :

the second would not be secured by any equity,

WALLSTREETESQ :

and you can discharge much of the debt as it will be considered

WALLSTREETESQ :

unsecured in bankruptcy court only,

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied with our service please provide us with positive feedback, thank you

WALLSTREETESQ :

Thank you

Expert:  WALLSTREETESQ replied 3 years ago.
If you have any further questions please do not hesitate to ask.
If satisfied please provide us with positive feedback, thank you
Expert:  WALLSTREETESQ replied 3 years ago.
If you have any further questions please do not hesitate to ask.

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