Understanding Agreed Orders
While in Chapter 13 bankruptcy, you may fall behind on one or more of your direct payments accounts with secured creditors. Primary source of this delinquency is post petition mortgage arrears. Your mortgage company will file a Motion for Relief from Stay and this matter will generally be resolved by the signing of Agreed Order to cure the arrearage.
First type of Agreed order will allow your post petition mortgage arrears, late fees and attorney fees to be provided for in your Chapter 13 bankruptcy plan.
Second type of Agreed order will allow your post petition mortgage arrears, late fee & attorney fees to be paid directly to mortgage company in 6 consecutive monthly payments. These agreed order payments will be due in addition to your regularly scheduled monthly mortgage payment. The agreed order payments as well as your regular monthly mortgage payments must be paid timely.
Once Agreed order of any type has been signed to assist with retaining your property then you must remain current on your payments. Most Agreed order will have a 2 default notice clause. This means that if you fall delinquent at any time during your bankrtupcy then the mortgage company will issue a 10 day notice of default allowing you only 10 days to pay current. If 2 prior notice of defaults have been issued and you fall delinquent again then the mortgage company is not required to notice you of the delinquency and will terminated the stay protecting your home without further action through the courts. The stay will also be terminated if you are issued a 10 day notice of defualt and the delinquency is not cured by deadline.
An agreed order is a one-time opportunity for you to get back on track while in your bankruptcy. If you fall behind again then our office can not request another agreed order for arrearage. This agreed order should be taken seriously and all payments must be paid timely to avoid possible foreclosure of property by your mortgage company.
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