Central District Consumer Bankruptcy Attorney's Association

Dear members:
I have a client who received a final loan modification package which was
submitted 6 months ago. Their mortgage statements reflect that the account
is now brought current and reflect the new payment amount. However, i
remain skeptical about the finality due to Statute of Frauds issues (The
bank hasn't returned a loan modification signed by them); recordation issues
(if there is a successor and the agreement is not recorded, is the successor
bound to the loan modification agreement); and consideration issue (no new
money paid to obtain the agreement, only an agreement to pay money already
owed, Contracts 1 - This is not considered consideration.)
But due to credit card debt and lawsuit by creditor they really need to file
a chapter 7 bankruptcy. My specific questions (ignore issues regarding
validity of loan modification):
1. Should I list the loan modification on Schedule G - Contract still
requires substantial performance?
2. If the debtor lists the contract on Schedule G - and the debtor receives
a discharge, does this strengthen the enforcement of the loan modification
if lender or successor balks?
3. Should I list on Schedule "B" a potential breach of contract claim
against lender based on anticipatory breach? How much anticipation required
in order to allege that a claim may exist? I'm thinking of the situation
where the lender decides not to honor the loan modification after the debtor
files bankruptcy. Debtor wants to sue the bank.
4. Is this considered a POST petition claim which is not required to be
listed on schedule B?
Any thoughts on this subject?
R. Grace Rodriguez, Esq.
OFF: (818) 734-7223
CEL: (323) 304-5496
NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice
for ex parte Applications via voicemail or by email. You must comply with
California Law and give notice to a person in my office during regular
business hours.
CONFIDENTIALITY STATEMENT: This message contains privileged and
confidential information and is intended only for the individual named. If
you are not the intended recipient you should not disseminate, distribute,
store, print, copy or deliver this message. Please notify the sender
immediately by e-mail if you have received this e-mail by mistake and delete
this e-mail from your system.
Dear members:I have a client who received a final loan modification package which was submitted 6 months ago. Their mortgage statements reflect that the account is now brought current and reflect the new payment amount. However, i remain skeptical about the finality due to Statute of Frauds issues (The bank hasn't returned a loan modification signed by them); recordation issues (if there is a successor and the agreement is not recorded, is the successor bound to the loan modification agreement); and consideration issue (no new money paid to obtain the agreement, only an agreement to pay money already owed, Contracts 1 - This is not considered consideration.)
But due to credit card debt and lawsuit by creditor they really need to file a chapter 7 bankruptcy. My specific questions (ignore issues regarding validity of loan modification):1. Should I list the loan modification on Schedule G - Contract still requires substantial performance?
2. If the debtor lists the contract on Schedule G - and the debtor receives a discharge, does this strengthen the enforcement of the loan modification if lender or successor balks?3. Should I list on Schedule "B" a potential breach of contract claim against lender based on anticipatory breach? How much anticipation required in order to allege that a claim may exist? I'm thinking of the situation where the lender decides not to honor the loan modification after the debtor files bankruptcy. Debtor wants to sue the bank.
4. Is this considered a POST petition claim which is not required to be listed on schedule B?Any thoughts on this subject?R. Grace Rodriguez, Esq.OFF: (818) 734-7223CEL: (323) 304-5496
NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice for ex parte Applications via voicemail or by email. You must comply with California Law and give notice to a person in my office during regular business hours.
CONFIDENTIALITY STATEMENT: This message contains privileged and confidential information and is intended only for the individual named. If you are not the intended recipient you should not disseminate, distribute, store, print, copy or deliver this message. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system.

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