What happens if I am 1 month behind on both mortgages when I file Ch. 7?

[sealpup]

Long story short- it's our goal to file before the end of the month. However, we won't have enough money by the end of the month to pay both of our mortgages AND the remainder of what we owe for the bk. I'm waiting to hear back from our attorney, but getting anxious about this. We have $ sitting in our account and I don't want it sitting in there for someone else to grab, I want to get it out of there and pay it to someone ASAP. What happens if we are 1 month behind on both mortgages when we file? We would be caught up by 4/8. We intend to keep the house but not reaffirm. We had this all worked out perfectly and then we had a collector grab $ out of our account unexpectedly and I wound up in the hospital w/a kidney stone and missed time off of work (and I don't earn PTO).

[keepmine]

If you get current shortly after filing, you should have no issues.

[JJCA]

What if the the 'debtor' did not catch up/remained behind in payments? How would that change the BK?

JJ

[Freddy03]

Long story short- it's our goal to file before the end of the month. However, we won't have enough money by the end of the month to pay both of our mortgages AND the remainder of what we owe for the bk. I'm waiting to hear back from our attorney, but getting anxious about this. We have $ sitting in our account and I don't want it sitting in there for someone else to grab, I want to get it out of there and pay it to someone ASAP. What happens if we are 1 month behind on both mortgages when we file? We would be caught up by 4/8. We intend to keep the house but not reaffirm. We had this all worked out perfectly and then we had a collector grab $ out of our account unexpectedly and I wound up in the hospital w/a kidney stone and missed time off of work (and I don't earn PTO).

Why not pay your mortgage with the $ you have sitting in the bank. And careful how you spend that money. The trustee is going to ask for bank statements.

Good Luck

[sealpup]

Because my question is, do I pay for my bk with this money or do I pay my mortgage? My husband will be paid one more time before the end of the month, but even with that, I can't do both at 100% prior to the end of the month.

[tcreegan]

Hi sealpup,

I would pay the attorney first...then ask about being a month behind

You mentioned 'both mortgages' ....if you have a 2nd mortgage and little to no equity in the first, ask your attorney (since you already paid them)about negotiating a settlment.

Good luck with it!

Tom in Colo

ps: JJ, being behind in your payments shouldn't impact the BK, unless the trustee is going to sell the property. (now if you plan to stay, it will be an issue to iron out with your lender)

[discouraged]

Hmmm - sealpup said they want to keep the house just not reaffirn. First of all, open a new account and put your money in that. Creditors still may find it eventually but it will stave them off. Leave $5 in your old account so it is not closed. Can you pay the mortgages this month and finish paying the lawyer with the next check?

I don't know how sticky banks are about this as I am letting them foreclose. Some posts say you can't get behind if you want to keep the house. It really is a question for your lawyer but changing banks will help.

I actually took most of my money out and kept it at home and paid by money order but I also started a new account at a small neighborhood bank. When I did choose a lawyer he said that wasn't necessary for me to keep it out of the bank and now I let my money go to the new bank.