Houston, TX asked in Bankruptcy for Texas

Q: Are there penalties for a single creditor who delays a bankruptcy case via multiple claims on the same mortgage ?

The Chapter 13 bankruptcy case I’m referring to has a creditor (mortgage lender) who has made multiple claims on 1 mortgage. The court has ordered the creditor to submit one correct claim.

If the creditor drags the case on longer because of this, is there a penalty for the creditor?

Is there also a penalty for the fact that the creditor made multiple claims in the first place?

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2 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: It will not delay the case bc the court won’t let it. If he doesn’t file a single claim as directed, it might get treated as unsecured or non priority.

Justin M. Gillman
Justin M. Gillman
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Edison, NJ

A: First, this is a complicated enough issue that you should certainly review with an experienced bankruptcy attorney. With that said, it is not uncommon to see these issues. If the Court has entered an Order directing the Creditor to file a "corrected" claim and the creditor has not done so, you may be able to seek sanctions against the creditor for violating the court's order. This is very case and jurisdiction dependent, but there are options and rights which is one of the many benefits of addressing mortgage claims in a Chapter 13 case.

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