Help!! Can a credit card be included by lender if not part of BK?

[bakergrl]

Around 2-3 months before we filed for bankruptcy in a last ditch effort we combined a credit card with a balance of over $10,000 into our second mortgage to try to lower our payments (stupid I know but we did not know we were going to file).

Anyways, the lender was suppose to close out the CC but they left it for a couple of weeks and there was a problem where $600 came through on it for a charge that was suppose to be canceled. So the lender said that they would close the CC down but there would be a balance on it and we were responsible to make payments on it. So we made several payments on the $600 balance and then decided to file and our lawyer said that we had to include the balance or it would be looked at as favoritism. So it was included and the BK and the lender sold the $600 balance to a debt collector (this shows DC on our credit).

I went on TrasUnion and it shows the $10,000 balance also included as part of the chapter 7 bankruptcy. Is this correct?

I just do not get how they lender can put it down as part of the bankruptcy when it wasn't and I am still responsible to pay the balance in the 2nd mortgage??

[keepmine]

It was part of your bk. All creditors must be included.

Nothing wrong with a lender selling an account IIB to a collection agency. Done all the time. The collection agency can't try and collect without violating the permanent injunction prohibiting collection activity post discharge.

[SMinGA]

When you file BK, all debts are 'included'. When it comes to secured debts, however, you need to keep paying them if you intend to keep the property. The BK discharges your obligation to pay, but does not discharge the lenders security interest in the property.

[bakergrl]

But am I responsible for the $10,000 dollars? They rolled it into my 2nd mortgage which is secured and I am paying on. Then in my credit report it says that the $10,000 was included in the Chapter 7.

So i need to know if I am responsible for it or not? How can they include something that according to them no longer exists because now it is part of a secured debt? Also, I did not put that card in the BK because it was suppose to be no longer there.

[newbie2]

But am I responsible for the $10,000 dollars? They rolled it into my 2nd mortgage which is secured and I am paying on. Then in my credit report it says that the $10,000 was included in the Chapter 7.

So i need to know if I am responsible for it or not? How can they include something that according to them no longer exists because now it is part of a secured debt? Also, I did not put that card in the BK because it was suppose to be no longer there.

You'll need to have your attorney add that creditor to your filing. It can be amended to do so. Also bring up to your attorney that their claim amount is incorrect.

[bakergrl]

I called my attorney and they are not in today but her assistant said that she has never heard of a company splitting it off after BK.

Is this even legal? I just don't get how they can take part of a secured debt and add it to the BK without our knowledge. And how does that benefit them they are losing that money right?

You'll need to have your attorney add that creditor to your filing. It can be amended to do so. Also bring up to your attorney that their claim amount is incorrect.

This is what TransUnion says, am I misunderstanding that they added it in? ( I edited out balance)



Balance:
Date Verified: 07/2010
High Balance: *****
Credit Limit: *****
Pay Status: Unrated
Account Type: Revolving Account
Responsibility: Individual Account
Date Opened: 08/2000
Date Paid: 01/2010
Loan Type: Credit Card
Remark: >Chapter 7 bankruptcy<
Estimated date that this item will be removed: 10/2016

[SMinGA]

You cannot have a debt that was NOT already part of your bankruptcy. Any debts owed at time of filing were included in your bankruptcy. The difference, for secured debts, is if you chose to keep the assets & keep paying. You can walk away and owe nothing if you did not reaffirm. But you cannot keep property (secured debts) without paying for them.

[bakergrl]

You cannot have a debt that was NOT already part of your bankruptcy. Any debts owed at time of filing were included in your bankruptcy. The difference, for secured debts, is if you chose to keep the assets & keep paying. You can walk away and owe nothing if you did not reaffirm. But you cannot keep property (secured debts) without paying for them.

Thank you for the repy. I'm sorry this is really confusing to whether or not this was discharged off? I have made the payments every month on the secured 2nd mortgage but I do not understand why this is showing up as it does as discharged in the BK, the other secured debts say paid or paying as agreed (this one looks like the other DC credit cards). I'm trying to understand if this balance is now secured or left as unsecured and DC. I thought that this should read account closed because it was moved and closed before I filed.

Can you make it simple for me and let me know per the info I put up from TransUnion if this was DC? I just do not understand all of this and I do not want to bug my lawyer and pay out more fees if this is still in my 2 nd.

[SMinGA]

Anything that you did not reaffirm - debt was discharged in the bankruptcy.

Even secured debts get discharged - but if you want to keep them, you keep paying. Did you reaffirm the other secured debts? That would be why they are reporting payments. For this $10k (sounds like a HELOC?) if you did not reaffirm, you do not owe it. But they still have a security interest in your house - so if you stop paying they have the right to foreclose. Whether they would or not, no one here can really say.

[bakergrl]

Thank you for the reply!!

I did not reaffirm the mortgages because the house is underwater and the lawyer said to just pay and stay.

What I am wondering about is when I go to sell the house in the future if they can force me to pay the $10,000 (transunion shows 2nd with CC included and a separate one with just CC- it does not say closed like it is suppose to)? If they messed up and DC it as the CC then I won't have to correct?

They will not tell me that balance so that is why I am upset because if I can amend and put this as a CC and get it as part of the BK I would rather do that then fight them later or pay them money I do not owe. We want to get a bigger house hopefully within 5 years so I would have to try to sell to get a new loan somewhere.

The company is very shady and if I could move the mortgages to someone else I would.

Anything that you did not reaffirm - debt was discharged in the bankruptcy.

Even secured debts get discharged - but if you want to keep them, you keep paying. Did you reaffirm the other secured debts? That would be why they are reporting payments. For this $10k (sounds like a HELOC?) if you did not reaffirm, you do not owe it. But they still have a security interest in your house - so if you stop paying they have the right to foreclose. Whether they would or not, no one here can really say.

[mrskal]

Am I reading you right OP? You had a CC with $10k balance, and somehow moved it to your 2nd mortgage (HELOC?). In effect, that CC had no balance it was paid off basically by using monies avilable from your 2nd. Your balance on the 2nd, went up by the $10k right? Now it shows as a debt for the original CC company? Has the balance of your 2nd changed? I could be confused, hopefully you can find your answers here.

[bakergrl]

We rolled the credit card into the 2nd mortgage to get a lower payment trying to avoid BK. The 2nd mortgage balance went up the additional $10,000 +. The credit card was suppose to be closed (after being payed off by 2nd).

On our credit report it shows the $10,000 as included in the BK as a CC, not as "closed" like it was suppose to be. The balance on the 2nd mortgage still is reflecting the additional money on the report, and the company will not give us a statement of what the actual balance is because we will not reaffirm the mortgages with them. (So basically per credit report I am hit with $10,000 CC D/C in BK, and I get to pay them the amount still if I want to keep my house).


So I am trying to find out in the end when I sell the house if I will be required to pay the $10,000 in order for them to release everything. I would rather fight them now than later on this. If we knew that we were going to file I would have put the CC in the BK.

Am I reading you right OP? You had a CC with $10k balance, and somehow moved it to your 2nd mortgage (HELOC?). In effect, that CC had no balance it was paid off basically by using monies avilable from your 2nd. Your balance on the 2nd, went up by the $10k right? Now it shows as a debt for the original CC company? Has the balance of your 2nd changed? I could be confused, hopefully you can find your answers here.

[newbie2]

We rolled the credit card into the 2nd mortgage to get a lower payment trying to avoid BK. The 2nd mortgage balance went up the additional $10,000 +. The credit card was suppose to be closed (after being payed off by 2nd).

On our credit report it shows the $10,000 as included in the BK as a CC, not closed like it was suppose to be. The balance on the 2nd mortgage still is reflecting the additional money on the report, and the company will not give us a statement of what the actual balance is because we will not reaffirm the mortgages with them. (So basically per credit report I am hit with $10,000 CC D/C in BK, and I get to pay them still if I want to keep my house).


So I am trying to find out in the end when I sell the house if I will be required to pay the $10,000 in order for them to release everything. I would rather fight them now than later on this. If we knew that we were going to file I would have put the CC in the BK.

It sounds to me like the CC didn't get the payment from the mortgage holder. If that's the case, then the mortgage holder should reverse that $10,000 from your balance. Talk to your attorney so that this can be straightened out.

[bakergrl]

They should be calling me back sometime the next couple of days. I just do not want to have to pay even more to get this fixed if it is correct, kwim?


The CC, and both mortgages are through the same credit union, so I can't figure out how this is so messed up.

It sounds to me like the CC didn't get the payment from the mortgage holder. If that's the case, then the mortgage holder should reverse that $10,000 from your balance. Talk to your attorney so that this can be straightened out.