Jonathan and Jodi Ginsberg practice together as Ginsberg Law Offices. Jonathan's practice focuses on:
- Social Security disability
- Consumer bankruptcy - Ch. 7 and Ch. 13
- Personal injury claims (auto accidents, negligence)
Jodi's practice focuses on:
- Georgia workers' compensation claims
- Medical malpractice
A: It is not the trustee's error. Claims sometimes come in higher than expected or sometimes they are amended. Also, if your husband missed a payment or only paid a partial payment, then the term could exceed 60 months. Chapter 13 is a giant math problem and the trustee's system spits out terms problem when the math doesn't work. The fix would be to make a one time payment or to increase the monthly payment so the numbers work.
A: The secured creditor's failure to file a proof of claim does not eliminate the lien filed in your state clerk's records. If the secured lender does not file a proof of claim it will not participate in the Chapter 13 distributions but its lien and right to collect remain and will survive the bankruptcy.
Since many Chapter 13 cases are filed to cure mortgage arrearages, it defeats the purpose of the plan for a mortgage creditor not to participate in the Ch. 13. That's why, in many districts, the debtors' attorney is required to examine the claims file and report to the court (or file a substitute claim) if the creditor does not file a proof of claim.
Also, in many districts, the trustee will accept a late filed claim.
Bottom line: your mortgage isn't going to go away and you don't get your house for free.