See How Easily Falling Behind on Your Chapter 13 Bankruptcy Mortgage Payment Can Lead to Foreclosure

As part of your Chapter 13 bankruptcy plan you have agreed to not only make payments on your over due debt, but you have also agreed to continue to make your mortgage payment. If you fall behind that can beChapter 13 Bankruptcy Foreclosure disastrous and lead to foreclosure.

What happens?

1. If you fail to make your Chapter 13 mortgage payment for 2 to 3 months, the mortgage company’s attorney is going to send you a nice letter giving you an opportunity to catch up.

2. However, if you don’t immediately catch up on your mortgage payments. The mortgage company’s attorney is going to file a “motion of relief”.

The mortgage company is asking the bankruptcy trustee to lift the automatic stay protection so that they can foreclose on your property.

3. They are going to suggest that you try to settle this issue by catching up on payments over six to eight months, plus paying the cost of filing the motion for relief, plus their attorney’s fees. That can add as much as $600 to $800 plus your delinquent mortgage payments.

4. If the mortgage company decides they don’t want to settle the issue and it goes before the bankruptcy trustee, odds are that the trustee is going to agree with the mortgage company and give them the right to foreclose on your property and collect the attorney’s fees.

If you fall behind on your mortgage payments in a Chapter 13 bankruptcy you can lose your home.

If your financial situation has changed for the worse, you can file a petition to modify your plan, or even convert to a Chapter 7.

If you are a Chapter 13 bankruptcy debtor who has fallen behind on your payments, you need to immediately consult an experienced bankruptcy attorney. You don’t want to lose the protections that Chapter 13 bankruptcy provides.

One Response to “See How Easily Falling Behind on Your Chapter 13 Bankruptcy Mortgage Payment Can Lead to Foreclosure”

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