I have already filed and I am behind
Clients come into our office to seek relief from their creditors. People who get behind on their home tend to file for a Chapter 13 bankruptcy to save their home from being foreclosed. During the process of making their Chapter 13 plan payments, they find themselves in another problem where they can’t make their house payments. They are one month behind, but are current on their Chapter 13 plan payments because they are under a wage order. They are freaking out because they don’t know what to do. While you are in a Chapter 13 bankruptcy, the mortgage company has to go through the courts to get permission before they can do anything to your property. They typically start the process when you are about 45 days delinquent or longer depending on the mortgage company. Once the mortgage company files their motion to lift the automatic stay, consult your bankruptcy attorney for options that are available to protect your asset.
After you have consulted your bankruptcy attorney, you should now know that you have three options. The first option would allow you to take your mortgage payments and roll them into your Chapter 13 plan, allowing you to start making your payments again to the mortgage company starting the following month. This will cause your Chapter 13 plan payments to increase, but not significantly. The second option will allow you to make six monthly payments to the mortgage company in addition to your mortgage payments, so depending on how far behind you are, you may have to pay two mortgage payments each month for six months. If you can’t afford it, this is usually not an advisable option for you. The last option is to let the house go back to the lender. People who can no longer afford their home chose this option because they finally realize that they can find a place to live that is cheaper than the place they are currently living in. Contact your bankruptcy attorney if you need any help with options regarding your mortgage once you have filed you Chapter 13 bankruptcy.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
