I am 3 months behind on my mortgage after filing chap 13 about 2 years ago. The plan includes mortgage arrears. I am on a 4 year plan which I am current on. I have 2 questions:
1. If I need to skip a plan payment at what point would I be dismissed. I heard 2 months. What if you are due June 27 and don't pay until Aug 27 is that exactly 2 months that they dismiss?
2. I came across this article. Is it true that they will do an astipulation even after they file for relief? If they do file how long do I have to get caught up? I plan to be caught up by August anyways. I just want to be ready for a plan of action in case they file beforehand.
Please read below and tell me if this is really an option. I am from Wisconsin.
You MUST make current mortgage payments to the mortgagee after you file. This means immediately after you file. That is, if a case would be filed January 16, 2004, you must make a mortgage payment for February, 2004. Having said that, what if you don't? Will you be thrown from your living room out your new plate glass bow window onto the street. Yes! If you live in Bulgaria. But here in the US the mortgage company will file a motion for relief from the stay. The purpose of this motion is to allow the mortgage company to commence or continue the foreclosure action in state court. The Bankruptcy Court will never evict someone from their home. A state court may, however. Should you panic if this happens (stay relief motion, that is)? Not really, but you and your lawyer must take action. You can very often settle such motions by astipulation or agreement to spread the post-petition arrears over a short period and pay the arrears in addition to your regular payment. For instance, if you are in arrears in the amount of $6,000 and your mortgage payment is $1,000, then your new payment might be $2,000 ($1000 a month for six months plus the $1000 regular payment).
Stipulations should not be taken lightly. By entering into a stipulation, you often give up the opportunity to be late ever again in the bankruptcy case. That is, if you are late again, ever, even after you have paid back all the arrears, the bank will get immediate relief and take action against you in state court. Some people get a false sense of security, having "completed" payments on a stipulation. Don't be fooled. These can be a trap for the unwary.
If you missed payments and your mortgage company filed this motion, do not make any other payments to the mortgage company. Consult your lawyer for advice as to where to send payments first! Payments should generally (at least the first payment) go to the attorney for the mortgage company. Payments should clearly be marked "for post-petition arrears only," unless your attorney advises you otherwise. In short, you MUST have competent counsel to assist you! This is not "People's Court!"
Even after a mortgage company has relief, a good attorney can petition the court to reconsider the relief. This is no guarantee of results though. Of course, this depends upon your district.
1. If I need to skip a plan payment at what point would I be dismissed. I heard 2 months. What if you are due June 27 and don't pay until Aug 27 is that exactly 2 months that they dismiss?
2. I came across this article. Is it true that they will do an astipulation even after they file for relief? If they do file how long do I have to get caught up? I plan to be caught up by August anyways. I just want to be ready for a plan of action in case they file beforehand.
Please read below and tell me if this is really an option. I am from Wisconsin.
You MUST make current mortgage payments to the mortgagee after you file. This means immediately after you file. That is, if a case would be filed January 16, 2004, you must make a mortgage payment for February, 2004. Having said that, what if you don't? Will you be thrown from your living room out your new plate glass bow window onto the street. Yes! If you live in Bulgaria. But here in the US the mortgage company will file a motion for relief from the stay. The purpose of this motion is to allow the mortgage company to commence or continue the foreclosure action in state court. The Bankruptcy Court will never evict someone from their home. A state court may, however. Should you panic if this happens (stay relief motion, that is)? Not really, but you and your lawyer must take action. You can very often settle such motions by astipulation or agreement to spread the post-petition arrears over a short period and pay the arrears in addition to your regular payment. For instance, if you are in arrears in the amount of $6,000 and your mortgage payment is $1,000, then your new payment might be $2,000 ($1000 a month for six months plus the $1000 regular payment).
Stipulations should not be taken lightly. By entering into a stipulation, you often give up the opportunity to be late ever again in the bankruptcy case. That is, if you are late again, ever, even after you have paid back all the arrears, the bank will get immediate relief and take action against you in state court. Some people get a false sense of security, having "completed" payments on a stipulation. Don't be fooled. These can be a trap for the unwary.
If you missed payments and your mortgage company filed this motion, do not make any other payments to the mortgage company. Consult your lawyer for advice as to where to send payments first! Payments should generally (at least the first payment) go to the attorney for the mortgage company. Payments should clearly be marked "for post-petition arrears only," unless your attorney advises you otherwise. In short, you MUST have competent counsel to assist you! This is not "People's Court!"
Even after a mortgage company has relief, a good attorney can petition the court to reconsider the relief. This is no guarantee of results though. Of course, this depends upon your district.