Will this hold up our discharge?

[SleepWellNow]

Ok...we were at day 57 of our Chapter 7 and everything looked like it was going smoothly, until...GMAC Mortgage filed a Motion of Relief of Stay. Does anyone know if this will hold up our discharge? I'm not sure what their strategy is (except the lawyer is going to make a few extra bucks). If they just waited another week for our discharge, wouldn't they be free to do whatever they wanted with the house? Am I missing something here?

[lifelesson]

it becomes a moot issue if your discharge happens first. We a had a similar situation with a trailer. we were not reaffirming and since our attorney had to file to extend our discharge date( so we could reafirm the home) the trailer hearing went forward and they got the relief of stay, and the next day the bank called about picking up the trailer.

[BobMango]

Were you planning on keeping the house? If you're planning on letting it go I'm not sure this makes any difference.

[SleepWellNow]

This house is an investment property. We applied for a loan modification (with our attorney's permission) and GMAC approved the modification. We sent the signed and notarized agreement (along with a down payment) back to GMAC which they verified was received on Friday. That very day, the GMAC attorney filed the motion. One of the terms of the modification was reaffirming the debt.

Last week, before the motion was filed, my negotiator had said the mod would not be finalized until the trustee approved it. I told her we would probably have our discharge before all that could take place. In that case, she said we would just skip that step with proof of the discharge.

I spoke to GMAC's BK dept today (I couldn't reach my negotiator) and they said if we get discharged BEFORE the trustee approves the modification, the mod becomes null and void and we have to start all over again. So, my question is...will the motion stall the discharge or will the discharge go through as scheduled. It seems like such a waste of the court's time when the end result is the same...GMAC will be free to do whatever they want to do with the property.

[BobMango]

This house is an investment property. We applied for a loan modification (with our attorney's permission) and GMAC approved the modification. We sent the signed and notarized agreement (along with a down payment) back to GMAC which they verified was received on Friday. That very day, the GMAC attorney filed the motion. One of the terms of the modification was reaffirming the debt.

Last week, before the motion was filed, my negotiator had said the mod would not be finalized until the trustee approved it. I told her we would probably have our discharge before all that could take place. In that case, she said we would just skip that step with proof of the discharge.

I spoke to GMAC's BK dept today (I couldn't reach my negotiator) and they said if we get discharged BEFORE the trustee approves the modification, the mod becomes null and void and we have to start all over again. So, my question is...will the motion stall the discharge or will the discharge go through as scheduled. It seems like such a waste of the court's time when the end result is the same...GMAC will be free to do whatever they want to do with the property.

It sounds to me like they are saying that the loan mod will have to start from scratch, not your discharge. I don't believe that GMAC filing for relief will affect your discharge, but others may have direct experience to the contrary.