Lenox, MI Bankruptcy Law Firms & Lawyers

I'm assuming that you are in California, as this is where your question was posted. Answer relates to CA only. You have not YET wiped out the 2nd lien because the lien strip order, read it carefully, states that the second will be removed ONLY upon the successful completion of the chapter 13. If your case ends up in dismissal that second loan is not stripped off. I'm unsure about renting the place. In order to wipe out the 2nd, there are some requirements, one of which is that the property be a primary residence of the debtor. While I assume the property is or was a primary residence at the time you filed your case I haven't seen any case law about what happens if the property is a primary residence upon filing of the case but then later during the pendency of the case becomes a rental. This doesn't mean that there isn't a case out there on point. If there isn't a case it doesn't mean that a creditor might not want to bring such a case to court as a case of first impression. If you were the creditor, subject to a lien strip order that will cause you to lose significant money, and got wind of the fact that the house is no longer a primary residence of the debtor, you might consider seeking some legal recourse like maybe bringing action to court to vacate the order, arguing that the property is no longer a primary residence and under these circumstances a lien strip can no longer be granted. How that would play out, I'm not sure. It is incorrect to say that your house is not included in the bankruptcy. All of your assets are the estate of the bankruptcy and all debts must be disclosed in your bankruptcy case. If you have received a lien strip order, most certainly the debts and the property is listed in the petition. This is a common confusion among petitioners in that they think that just because they get to keep an asset, neither the debt nor the asset is part of the bankruptcy.

You only need to file a proof of claim to the bankruptcy court if you expect to get paid. Sending a proof of claim to the debtor or even to the bankruptcy trustee would be completely ineffective, as would sending the claim to the assignee.

While you don?t owe the bank any money (assuming the debt was properly listed and was indeed discharged), the bank still HAS A LIEN on the real property and can add the cost of the insurance to the lien amount. It sounds like they are just sending you information regarding the amount of the lien they have on the property.