Help

[Tired One]

What is the name of your state?Pa

what happens if a second mortgage holder does not repond to the letters by the date allowed by the trustee Thanks

[Ladynred]

What Chapter of bankruptcy, 7 or 13 ?

What kind of letters is the Trustee sending ??

[Tired One]

its a 13 & the letters from the matrix Thanks

[Ladynred]

Ok. I'm going to assume its the letter from the Trustee telling them of your bankruptcy and that they should file their claim.

If that is correct, if the 2nd mortgage holder doesn't file a proof of claim with the Court, then they will not be included in the Ch13 plan and they will not get paid a dime.

[Tired One]

will they still hold a second mortgage or will it be gone Thanks for your Help Ladynred

[Ladynred]

You really need to ask your lawyer. Since a mortgage IS a secured debt, and if its not paid, they CAN forclose on you - after a motion for relief from the automatic stay. You might want to ask your lawyer if a 'cram down' is possible on the 2nd mortgage. Typically secured debts are paid at 100% in a Ch 13. The debt can be discharged, but in order to KEEP secured property, you have to keep paying, that's the way it normally works.

[Tired One]

is there a form for the cram down Thanks again

[Ladynred]

Hmm.. I dunno about a form for that, I believe its more of a procedure and/or motion than a form you file. I'll have to check on that.

The Chapter 13 “cram-down” provision allows debtors to retain collateral as long as they offer repayment of the “secured portion” or fair market value of the collateral in their repayment plan. The balance of the indebtedness that exceeds the fair market value of the collateral is considered to be unsecured and is placed at the lowest priority of payment.