Chapter 13 and House Mortgage: Curing a Delinquent Mortgage
By Andy Miofsky, Illinois Bankruptcy Attorney on Feb 26, 2008 in Chapter 13 Bankruptcy, Illinois, Mortgages
Chapter 13 bankruptcy permits a debtor to cure a delinquent mortgage payment over a period up to five years in length. Typically, a debtor proposes a plan to repay, or cure, the arrearage in equal monthly payments during the life of the plan. Some plans might involve staggered payments, eventually paying off the delinquency by the end of the plan.
While the debtor is in chapter 13, the debtor is obligated to honor all terms of the mortgage, including the timely payment of future monthly mortgage payments, maintenance of insurance and payment of real estate taxes. A debtor who successfully completes a chapter 13 plan can emerge from bankruptcy in good standing on the mortgage.
Naturally, after bankruptcy, the debtor is obligated to continue honoring the mortgage terms and to timely pay all future payments.
If you liked that post, then try these...
My Hearing Was Continued Since My Debt Dates Were Incorrect. by Michael Doan
Bankruptcy Liability Discharge: In Personam vs. In rem. PART I of II by Michael Doan
What Is The Difference Between Chapter 7, Chapter 9, Chapter 11, Chapter 12 and Chapter 13 Bankruptcy? by Susanne Robicsek, North Carolina Bankruptcy Attorney
What Do I Do With Tax Refunds During My Chapter 13? by Rachel Lynn Foley - Kansas City, MO Bankruptcy
Is Bankruptcy the Right Decision? (Part 3) by Brett Weiss, Maryland Bankruptcy Attorney
1 Trackback(s)
You must be logged in to post a comment.