Legal Question in Bankruptcy in New Jersey
Chapter 7 Bankruptcy Rights?
My original mortgage co. was listed in a Chapter 7 backruptcy in 1/96. in which I was willing to surrender the property. The next month, they sold the note to the current holder who after 18 months of no contact with us, proceeded with Forclosure proceddings. In desperation to retain the property I filed a chapter 13 which has since been dismissed due to the fact that an agreement was made to sell the house. Question: Was my filing of the chapter13 done in error since the obligation should have been discharged in the Chapter7. Did the current mortgage company violate any bankruptcy laws by threating forclosure and forcing me to file a chapter13 which has since damaged my credit rating and limited my ability to obtain future financing for another property? Do I have legal grounds for restitution and damages?
1 Answer from Attorneys
Re: Chapter 7 Bankruptcy Rights?
The filing of the initial Chapter 7 bankruptcy petition would not necessarily wipe out the obligation to pay the mortgage company. In order to avoid losing your home, you would have needed to continue to make payments to the mortgage company. In most cases, a Chapter 13 petition would have been filed at the outset in order to come up with a plan to satisfy the arrears that were apparently due and owing. I would suspect that the mortgage company had obtained an Order allowing for the lifting of the automatic stay which then allowed them to proceed with their foreclosure or, in your case, allowed the assignee to proceed with the foreclosure. In order to completely answer your question, I would need to see all of the Orders that arose out of both bankruptcies. Alternatively, the attorney who filed the petitions for you could explain it. If you would like me to help you, please call me at my office which is 856-546-8010
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