Newly filing Chapter 13

[spazzman]

I was just wondering, if you file Chapter 13 and you're going to keep your home, or try anyways, when do you have to start paying the mortgage again? Does it continue the moment you are officially filed ? Also, what hapens if your current income increases after you file? Do the payments automatically raise with the trustee?

[lrprn]

If you are in arrears on your mortgage when you file, typically the trustee will make your mortgage payments for you inside your Ch 13 plan after it's confirmed. If you are up to date on your mortgage payments when you file, then it's possible to keep making your mortgage payments directly yourself. In this situation, if you choose not to reaffirm, then you MUST make all your mortgage payments on time.

About the timing of payments....if you are making your mortgage payments directly yourself, then you keep making your mortgage payments just like always when they are due throughout the entire length of your plan. If the trustee makes the payment, then he will start disbursing to your secured creditors, including your mortgage company, when he's ready to do so whether your plan is confirmed or not.

Be sure to ask your bk lawyer what's best for you in your unique financial situation. Good luck and keep us posted on how things are going for you.

[Interlaw]

I was just wondering, if you file Chapter 13 and you're going to keep your home, or try anyways, when do you have to start paying the mortgage again? Does it continue the moment you are officially filed ? Also, what hapens if your current income increases after you file? Do the payments automatically raise with the trustee?

You are required to resume your payments to your secured creditors beginning with the next payment due after you file your case. Example: if you file on October 1, and your mortgage is due on the first, you resume your mortgage payments on November 1. If your mortgage is due on the second of the month, you have to pay it October 2.

If your income increases, it depends on when, and what your trustee's practice is. Here in Maryland, for instance, if your income increases after the 341 the Trustee generally won't care (unless something brings it to the trustee's attention.)

Brett Weiss
[email protected]

https://www.brettweiss.com/bankruptcy

Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

--> Read our Bankruptcy FAQ at www.brettweiss.com/bankruptcy/FAQ/br_faq.htmwww.brettweiss.com/faq/br_faq.htm.

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The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
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