Can a Debtor Cure Another’s Mortgage through Chapter 13?

Consider the following Christmas miracle: Bob Cratchit has a long-term mortgage with Scrooge & Marley Bank. Bob Cratchit dies and there is a default on the mortgage. The mortgaged residence then passes to his son, Tiny Tim, by operation of law. Tiny Tim files for chapter 13 and includes the defaulted mortgage with Scrooge & Marley Bank in his plan. Scrooge & Marley Bank argues it has no claim against Tiny Tim because privity of contract is lacking, and Scrooge & Marley Bank therefore has no debtor-creditor relationship with Tiny Tim. How might the court rule?

Unlock This Article

To get started, please let us know which of these best fits your current position:

Learn more about the membership.

Please sign in to continue reading this content.

Cole Parker

Law Clerk to the Hon. John P. Gustafson, United States Bankruptcy Court Northern District of Ohio

Certiorari Granted on Fed. Rule Civ. P. 60(b)(4) Motion

The Honorable William Houston Brown

June 15, 2025

Cert granted in bankruptcy case regarding Fed. Rule Civ. P. 60(b)(4).

Unjust Enrichment: Where Are We Headed?

Cathy Moran

March 2, 2025

A recent decision from a Hawaii bankruptcy court, inched closer to a slippery slope on the hill of nondischargeabilty, expanding the Supreme Court's Bartenwerfer decision. See also: Unjust Enrichment from Spouse’s Defalcation Leads to a Nondischargeable Debt By Leee Miyahira, Extern, Office of Nima Ghazvini (Honolulu, HI)

Members

Nice Try but No CFS for Below-Medians

Henry E. Hildebrand, III

July 20, 2025

Below-median income debtors must estimate their projected expenses on Schedule J and may not substitute the IRS allowances as their reasonable and necessary living expenses. Meaning they can’t outsource their budget!

Members

Ask Ms. Ps & Qs

Nancy B. Rapoport

August 7, 2022

Dear Readers: When a judge issues a 28-page opinion sanctioning a lawyer, usually that means that the lawyer has done so many things wrong that he or she has caused the judge to roll up his or her respective sleeves (probably shirt-sleeves, although the image of robe-sleeves also works for me) to deal with the mess. And in Shiheiber v....

Members

Appointment of Deb Miller

The Academy

April 2, 2023

It is our distinct honor to inform you that Acting U.S. Trustee Paul Randolph has selected Debra L. Miller as the next Standing Chapter 13 Trustee for the Eastern District of Tennessee (Northern and Northeastern Divisions). Ms. Miller has served as a Standing Chapter 13 Trustee in the Northern District of Indiana since 2000. Her wealth of experience will allow...

Forms Don’t Prove Themselves

Henry E. Hildebrand, III

July 5, 2026

Mortgage creditor is only entitled to fees etc., where such charges are included in the mortgage documents; creditor bears burden of proof that these fees, costs, and charges are reasonable. It is also said that you miss 100% of the hearings you don’t attend.

Members

Bankruptcy Conversion and Exemption Objection Deadlines

Hale Andrew Antico

December 17, 2023

Does a converted bankruptcy case restart the deadline for objections to exemptions? This is one of those articles that makes subscription to ConsiderChapter13.org “worth the price of admission”!

Members

Reflections and Ruminations on the “R” Word

Jan M. Sensenich

March 16, 2025

A former standing trustee considers a new chapter of life – an alternative to retirement. You gotta read all the way to the end!! “It was almost two years ago that across from the dinner table my wife of 45 years, and office manager of 35 years, announced that she was ‘done’.”

Members

A Pricey Lesson in Chapter 13 Fees

Henry E. Hildebrand, III

October 6, 2024

The district’s “no-look” fee is just a guideline for the court to assess what is reasonable for a debtor’s attorney to charge for filing a Chapter 13 case: the debtor’s attorney seeking something beyond it must prove that the fee is justified.

Members

Kill Switch: No Match for the Automatic Stay

Henry E. Hildebrand, III

August 9, 2026

Post-petition use of a “kill switch” disabling debtor’s leased automobile after receiving oral notice by the debtor that he had filed Chapter 13 constituted a willful violation of the automatic stay justifying the award of damages and, when egregious, punitive damages.

Members

Can a Debtor Cure Another’s Mortgage through Chapter 13?

Link to Post:

Unlock This Article

To get started, please let us know which of these best fits your current position:

Please sign in to continue reading this content.

Cole Parker

Law Clerk to the Hon. John P. Gustafson, United States Bankruptcy Court Northern District of Ohio

Related Articles

Certiorari Granted on Fed. Rule Civ. P. 60(b)(4) Motion

Unjust Enrichment: Where Are We Headed?

Nice Try but No CFS for Below-Medians

Ask Ms. Ps & Qs

Appointment of Deb Miller

Forms Don’t Prove Themselves

Bankruptcy Conversion and Exemption Objection Deadlines

Reflections and Ruminations on the “R” Word

A Pricey Lesson in Chapter 13 Fees

Kill Switch: No Match for the Automatic Stay

Academy

Members

Website

Legal

Looking to Become a Member?

Webinars

Member Articles

Industry News

To get started, please let us know which of these best fits your current position: