Hi i have a question for a friend. We filed ch7 in 08 so i do not know the answer for this. She has seen an attorney and they are about 20k above median so attorney said a 13. The attorney also told them if they file a 13 when they surrender their house that the mortgage co. can petition the court and make them pay back the difference in what the house sold for, is this true?
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"The attorney also told them if they file a 13 when they surrender their house that the mortgage co. can petition the court and make them pay back the difference in what the house sold for, is this true? "
Not exactly. The lender has a right to file a secured Proof of Claim. Once the property has been "sold", the lender has a right to amend the Proof of Claim, changing it from secured to unsecured, for the deficiency balance (unless there is an applicable anti-deficiency statute in your state). The lender is now an unsecured creditor and shares in whatever "pie" has been set up for all unsecured creditors. -
Thank you desprit!Comment
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