Mortgage Modification

30 Jul I’m in Chapter 13 and Behind on Mortgage Payments Again–What Now?

Many of my clients end up in bankruptcy because of a series of unfortunate events. Sometimes those events continue after the case is filed, and their troubles continue. When you file a Chapter 13 payment plan, you are generally required to keep making your regular mortgage payments, or resume making those payments if you have gotten behind. So what happens if you can't make your payments after you have filed a Chapter 13? Usually the mortgage lender will file a motion for relief from stay, asking the court to release your property and allow them to proceed with foreclosure. Some lenders will file that motion as soon as you miss a payment; others will allow the default to continue for a period of months before they take any action.
Read More