Motion For Relief From Automatic Stay

[crisarieta]

I filed for BK 3/30/05 Pro Se. I am now receiving notice that the lender of my 2nd mortgage has filed a motion for relief from the automatic stay. They have stated in the motion that because there is no equity in my home (which I have included in my BK as my intent is to surrender) and after the senior lender gets their funds that the residual amount wont cover their lein. It further states that because I'm filing for reorganization that I will have the funds to repay them. I'm told that I must file a motion of objection prior to the hearing date (8 days prior to meeting of creditors) otherwise the motion will be automatically granted. What are my chances? I was told that in most cases these motions are granted even if I file an objection and appear at the hearing. Thing is if the house is sold, senior lender gets there money; who will then get the residual amount? The 2nd lender? Then reducing what I owe them? The 2nd lender seems to indicate in this motion they want me to resume my monthly payments now paying on the current balance. Any thoughts or advise would be appreciated.

[EdytaHome]

The 1st mortgage always gets paid in full if there is enough equity the second mortgage takes a hit. I surrendered a home (which I'm actually selling right now anyway) and the 2nd mortgage company also sent me a reaffirmation agreement. What you need to do is not reaffirm. There will be negative equity because you can't pay both mortgages with the proceeds of the sale of the house. Since you are listing your intentions in the BK you should not owe anything!

[Cmonlottery]

Did you file 7 or 13? If you are surrendering your home then I see little point in filing 13. Besides once the house sells, the 2nd mortgage becomes an unsecured debt and goes to the bottom of the food chain. If you did file 13 then convert to a 7 and the debt becomes a moot point.

[HHM]

If your surrendering your home, why are you in a chapter 13 in the first place. You said you filed for a "reorganization", which is a chapter 13. I suppose you must have disposable income, but why dump the house when you don't have too.

[mark]

Pro-SE Chapter thirteen? Not a good idea. You should hire a lawyer and convert it to a 7. Paying back creditors in a 13 does not help your credit at all. Your credit report will show Bankrupcy with debt to boot. With 7 you have Bankrutcy but with zero debt. A much better situation for you.