Behind on mortgage & filing CH7

[sivuh5]

Is it considered a preferential payment to catch up on mortgage arrears just before you file CH7?

I am 3 months behind, and want to sell my house. I don't want to stay forever, but I don't want to walk away either. I know once I file they will most likely start foreclosure proceedings (they have currently put us in forbearance).

Is it ok to pay the 3 month arrearage so I'm current when I file?

What if I sell my car and use the money to pay the mortgage? Is this an issue?

Or, I might be able to borrow from a family member. Would I have to list them as a creditor?

And advice is appreciated.
S.

[laurannm]

I think it would be ok to pay off the mortgage arrears (although the trustee may want to know where the money came from).

If you sell your car and use the money to pay the mortgage, that should be fine. However, the money you receive from the sale of your car would be considered income on your means test.

Yep, you can borrow from a family member and list them as a creditor (thus it would not be considered income on the means test). Just make sure you don't make any payments to them before filing (it would be considered preferential if over a certain amount I believe, thus the trustee can go after your family member to recover the payment)