Banruptcy and Attorney Fees

[anniegreen]

What is the name of your state? Florida
I would like to know whether I am obligated to pay my mortgage company attorney fees in a chapter 13 bankruptcy. I have a first and second mortgage on my home. On the second mortgage, my payments are current, but my second mortgage attorney filed his attorney fees as an arrearage on my mortgage. Is this legal?

[azatty]

Yes. The mere fact that you have filed a bankruptcy affects a creditor's right to collect, even if you are not yet in default. It is not uncommon for second position lienholders (like a second mortgage) to have their attorneys appear in the case to monitor the situation. The mortgage obligates you to pay the costs of collection, including attorney's fees relating to collection matters (like a Chapter 13 bankruptcy would be).

That said, I wouldn't classify it as an "arrearage" per se, because the fee did not exist on the date you filed the bankruptcy. It is really an amount owed post-petition, and that amount would have to be paid in order to ensure Plan confirmation. Since he has classified it as an arrearage, he has given up leverage. Now, you can pay him over the life of the plan as an arrearage instead of paying him up front to avoid an objection to confirmation.

[anniegreen]

What is the name of your state? Florida
Questions: I would like to know whether I am obligated to pay my mortgage company attorney fees in a chapter 13 bankruptcy. I have a first and second mortgage on my home. On the second mortgage, my payments are current, but my second mortgage attorney filed his attorney fees as an arrearage on my mortgage. Is this legal?
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answer:
Yes. The mere fact that you have filed a bankruptcy affects a creditor's right to collect, even if you are not yet in default. It is not uncommon for second position lienholders (like a second mortgage) to have their attorneys appear in the case to monitor the situation. The mortgage obligates you to pay the costs of collection, including attorney's fees relating to collection matters (like a Chapter 13 bankruptcy would be).

That said, I wouldn't classify it as an "arrearage" per se, because the fee did not exist on the date you filed the bankruptcy. It is really an amount owed post-petition, and that amount would have to be paid in order to ensure Plan confirmation. Since he has classified it as an arrearage, he has given up leverage. Now, you can pay him over the life of the plan as an arrearage instead of paying him up front to avoid an objection to confirmation.
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Question:
Do this mean that the attorney for my first mortgage will attempt to collect their attorney fees when I try to get my plan confirmed. If so shouldn't a person attorney advice them that they would have to pay their creditor attorney fees when they get ready to confirm their plan.

[anniegreen]

What is the name of your state? Florida
Questions: I would like to know whether I am obligated to pay my mortgage company attorney fees in a chapter 13 bankruptcy. I have a first and second mortgage on my home. On the second mortgage, my payments are current, but my second mortgage attorney filed his attorney fees as an arrearage on my mortgage. Is this legal?
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answer from azatty:
Yes. The mere fact that you have filed a bankruptcy affects a creditor's right to collect, even if you are not yet in default. It is not uncommon for second position lienholders (like a second mortgage) to have their attorneys appear in the case to monitor the situation. The mortgage obligates you to pay the costs of collection, including attorney's fees relating to collection matters (like a Chapter 13 bankruptcy would be).

That said, I wouldn't classify it as an "arrearage" per se, because the fee did not exist on the date you filed the bankruptcy. It is really an amount owed post-petition, and that amount would have to be paid in order to ensure Plan confirmation. Since he has classified it as an arrearage, he has given up leverage. Now, you can pay him over the life of the plan as an arrearage instead of paying him up front to avoid an objection to confirmation.
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Question#2 from anniegreen:
Do this mean that the attorney for my first mortgage will attempt to collect their attorney fees when I try to get my plan confirmed. If so shouldn't a person attorney advice them that they would have to pay their creditor attorney fees when they get ready to confirm their plan.