If a debt is "discharged" to I still have to pay?

[amyjrn]

What is the name of your state (only U.S. law)? TX

If a debt is "discharged" to I still have to pay?

I will try to keep this simple. I bought a house in 2003 and did an 80/20 split mortgage. Got behind in payments, cc debt, yada yada and filed for chapter 13 in 2005. As per the bankruptcy agreement I made all BK payments and am done. During this 5 year time frame of repayment both of my mortgages (the 80 and the 20) were transferred/sold to different companies.


Back in Feb I was having some financial hardships (ie divorce) and called the company that has my 20% mortgage to let them know my payment would be late and to see if they could work with me on late fees. They took my account number and said they had to transfer me to the "bankruptcy department" at which point i was told that my loan was no longer collecting interest, no late fees would ever be assessed, and that there was actually no minimum payment amount??? She told me to "just pay what I could." And that if I happened to "come into some money they would take 50% of what is owed and call it even."

During the 5 years of my bankruptcyness (yes I invented a word) I did not received any monthly statements from either mortgage company. However, once the 5 years was up I did start to receive monthly statements from the company with my 80% mortgage....But have never heard a peep from the company with my 20%.

I recently pulled my credit report and it states that my 20% mortgage was "discharged in bankruptcy" as does the other CC debt I included in the BK.....so was the 20% mortgage treated like the other CC debt?

Thanks

 

[bigun]

You need to contact the lawyer who handled the bk and find out some particulars about your case.
It sounds like you may have been able to strip the junior lein.
The bk code allows this in a Chapter 13 if, the value of your home is below the amount of the first mortgage. In other words, no equity is supporting the 2nd mortgages position.In this case, it is unsecured debt and treated like credit cards or medical debt.
Or,if this isn't the case the holder of the 2nd mortgage holder just dropped the ball.

 

[nextwife]

While they cannot go after you personally to collect on the Jr mtg, any SECURITY interest not specifically ordered removed in the BK still remains against the collareral until paid off or foreclosed out. In other words, if you kept the house, the mortgage is likely still there and someday when you sell you will need to pay it off to transfer good title. The collateral likely remains incumbered by the mortgage. You do not have to pay, but realize that they still have rights under the mortgage. Someday, if the value supports it, they could decide to foreclose from 2nd position. They can't go after YOU to pay, but they can go after their collateral. The unpaid amount will continue to accrue.