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I filed for a Chapter 7 with little debt but had a rental property that was placed on me when by wife received a Chapter 7 .

Temple Hills, MD |

The chapter 7 was converted to a Chapter 13 because combined income was to high. Now the mortgage bank for the rental property is claiming deficiency upon sale of rental property. I surrendered property during initial chapter 7. Please advise if the mortgage bank filed after deadline, why is their deficiency claim being considered at all.

Attorney Answers 5

  1. Your post does not make much sense. What do you mean a rental property was "placed on you?" What do you mean by your wife "received" Chapter 7? Does that mean she filed a Ch7 case? Which Chapter 7 case was converted to Ch. 13 - your or hers? Most cases are converted TO Ch. 13 for higher income, not the other way around. Was there a foreclosure of the house? Who sold it? How is the bank "claiming" a deficiency - a lawsuit, filing a claim in the BR case. or some other way? What deadline? Facts are important.

  2. Your question is confusing and I hope you have retained an attorney to represent you on your Chapter 13 because you certainly need one. Any deficiency issues should be resolved within the framework of your bankruptcy, and if the creditor is ignoring the bankruptcy, legal action against them for violating bankruptcy laws would certainly be appropriate. Hope this perspective helps!

  3. I think you should consult ASAP with a bankruptcy attorney here in md. If there was a foreclosure the deficiency claim should be addresses in your chapter 13 case(s).

    Feel free to call me.

    Larry Holzman

    The Holzman Law Firm, LLC. 8955-A, Edmonston Road, Greenbelt, Md 20770, (301) 876-4393.

  4. The issue is not when you surrendered the rental property but whether you have received a discharge. If YOUR Ch7 was converted to Ch13, then you have not yet received a discharge and the deficiency claim is valid (if valid under MD law). If, on the other hand, you have, in fact, received a discharge of your dischargeable debts, then the bank may be subject to sanctions for violating that injunction.

  5. Did you have an attorney helping you with this? Your 7 was converted which means it is like you only filed a c. 13. How does your plan treat the property? So many questions that can't be answered based upon the little information provided. You should consult a local attorney ASAP.