Suncoast Credit Union’s Mortgage Survives Debtor’s Bankruptcy

A bankruptcy debtor with debts that were discharged under a Chapter 13 plan is still on the hook for a mortgage on which she defaulted after her plan was confirmed, a federal appeals court ruled.

The mortgage, one of two extended by Tampa, Fla.-based Suncoast Credit Union, wasn’t wiped out in the Chapter 13 plan because it wasn’t “provided for” by the plan, the court said.

The plan merely stated the mortgage would be paid outside of the plan and directly to Suncoast instead of through the bankruptcy trustee, Judge Julie Carnes of the U.S. Court of Appeals for the ...