February 20, 2018

Why You Must Pay Your Mortgage Directly After Filing Chapter 13

If you are behind on your mortgage, you can use Chapter 13 to stop a pending foreclosure and repay missed payments over the 5 year term of your Chapter 13 plan. However, filing your Chapter 13 case is only the first step in saving your home.

In Atlanta area Chapter 13 cases, your repayment plan will include a section which says that you agree to send in your regular mortgage payments as they come due during the term of your Chapter 13 plan. Your Chapter 13 trustee payment includes payments to the mortgage company to repay missed payment. Ongoing, future payments, must be paid directly to the mortgage company outside your plan.

Making your mortgage payments directly to your mortgage lender is part of your plan obligations.  Both your mortgage payment obligation and your obligation to pay your trustee start immediately after you file your case.  In fact, you will not be able to get your Chapter 13 case confirmed (approved) by the judge if your post-petition mortgage payments are not up to date. [Read more…]

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