what happens if you are late

[SMinGA]

Thanks for explaining... I was not aware that mortgage arrears did not technically get classified as a 'priority debt'.

"Priority Debt" has a specific, technical meaning in the bankruptcy code. That's where the confusion is coming from, I think. You are using the word "priority" in the everyday sense and I am reading it in the technical sense.

[SMinGA]

I see your dilemma... If you're late when you file, that can be a problem. But you almost need to be late to modify.

What about set that $ aside for May & June payments. Try to talk to them again but if nothing happens on the mod you would have the money to bring your mortgage current?

I haven't filed yet. I plan to file Chapter 7 in August or so.
I have been speaking to BofA to try and modify my mortgage.
I never go past 30 days in paying so technically, I'm not late.
I have been told because I don't qualify for the traditional modification, the only way they'll consider an "in-house" modification is after I'm Late. I'm so confused about what to do because I don't want to mess up my pending Chapter 7.
I would like not to send the May payment and see if they'll work with me. Any suggestions??

[MSbklawyer]

I said: "Mortgage arrears must be a priority debt, to be repaid in the plan." Translated: mortgage arrears are treated as priority in a ch. 13, and are paid thru the plan.

One cannot go into a ch. 13 with mortgage arrears and not have it paid thru the plan...

My understanding: priority (by definition) debts are paid ahead of general unsecured. Priority debts include taxes, mortgage arrears, any secured items paid in the plan. A plan cannot pay general unsecured debts and leave 'priority debts' unpaid.

You seem to think (perhaps I'm not following you either) that I'm suggesting mortgage arrears is not paid in the plan? Kind of confused by your post.

unsecured:

First: Domestic support obligations;

Second: Administrative expenses;

Third: Ordinary course business expenses in involuntary cases;

Fourth: Unpaid wages;

Fifth: Payments to employee benefit plans;

Sixth: Certain farmer / fisherman claims;

Seventh: Prepaid consumer purchases;

Eighth: Certain taxes;

Nithth: Certain FDIC obligations;

Tenth: Claims arising out of DUI personal injuries.

Mortgage arrears are paid ahead of unsecured debts in the bankruptcy plan not because they are priority debts; they get paid first in the bankruptcy plan because they are secured debts.

[freeatlast98]

Mortgage & Chapter 7

I haven't filed yet. I plan to file Chapter 7 in August or so.
I have been speaking to BofA to try and modify my mortgage.
I never go past 30 days in paying so technically, I'm not late.
I have been told because I don't qualify for the traditional modification, the only way they'll consider an "in-house" modification is after I'm Late. I'm so confused about what to do because I don't want to mess up my pending Chapter 7.
I would like not to send the May payment and see if they'll work with me. Any suggestions??

[SMinGA]

I said: "Mortgage arrears must be a priority debt, to be repaid in the plan." Translated: mortgage arrears are treated as priority in a ch. 13, and are paid thru the plan.

One cannot go into a ch. 13 with mortgage arrears and not have it paid thru the plan...

My understanding: priority (by definition) debts are paid ahead of general unsecured. Priority debts include taxes, mortgage arrears, any secured items paid in the plan. A plan cannot pay general unsecured debts and leave 'priority debts' unpaid.

You seem to think (perhaps I'm not following you either) that I'm suggesting mortgage arrears is not paid in the plan? Kind of confused by your post.

How can mortgage arrears ever be a priority debt? Priority debts are, by definition, always unsecured

[MSbklawyer]

Mortgage arrears must be a priority debt, to be repaid in the plan.

How can mortgage arrears ever be a priority debt? Priority debts are, by definition, always unsecured

[SMinGA]

Mortgage arrears must be a priority debt, to be repaid in the plan. Some districts require that if there are mortgage arrears, the regular (ongoing) mortgage payment gets made in the plan as well. Some don't.

You need to contact your atty, to have them add the mortgage (both) as priority debt. If you don't do it now, it will have to be done later and will probably delay confirmation. If you file now, the next regular payment on your mortgages is the June 1st payment, so anything outstanding prior is arrears.

[Flamingo]

You need to ask your attorney. Your circumstances have changed since you initially submitted your paperwork to him/her.

[waitinggame]

We are going to file on Monday, and currently are late on 1st and 2nd mortgage. (1 month behind on both). Will it be an option to delay making those payments now and add them after the Chapter 13 is done? The house is not included in my plan as it is now. Payments now are made outside the plan along with a car payment which is current.

Thanks for any help.