No matter which type of bankruptcy you’re going into whether it is a Chapter 13 or a Chapter 7 you really should be using a Dayton bankruptcy attorney to assist you. When it comes to your mortgage it is highly important that you keep up your mortgage payments. Otherwise what can happen is the lender can take court action to foreclose on your residence. However they would have to get approval from the bankruptcy courts to do this.
Mortgage Payments In Chapter 13
In many cases individuals have fallen behind on their mortgage payments and this is one of the reasons why they are filing for bankruptcy in the first place. The good thing about a Chapter 13 bankruptcy is that it gives allowances to be able to make payments to catch the mortgage arrears up. When this is done the lender can no longer foreclose on the home because of the arrears that were taking place before the bankruptcy. Normally once the bankruptcy payment plan has been put into place when it comes to the mortgage payments that they are continue to be paid as regular payments to the lender. In some cases though, the trustee may decide to have these payments included as part of the repayment plan.
Once you’ve entered into bankruptcy the mortgage lender has got to appeal to the courts in order to be able to foreclose on your home. There is an automatic stay that is put in place but that doesn’t preclude the chance for the lender to go ahead and take the legal action that he is entitled to.