5 Tips to Follow if You Want to Keep Your Home After a Chapter 13 Bankruptcy
When you file Chapter 13 bankruptcy, if your home is in foreclosure that foreclosure will stop.
Filing Chapter 13 bankruptcy stops the foreclosure. It gets you a protected legal environment to address the problems with your mortgage. This can be very relieving but it is important to keep site of the fact that you are not yet out of the woods. If you want to keep your home, then you should work with a bankruptcy attorney who can help ensure you do. Keep reading to find out five tips that can help you keep your home, then contact California Bankruptcy Relief at (888) 748-0025 for a free bankruptcy consultation.
1. Keep Making Your Mortgage Payments as Instructed
In most cases, a Chapter 13 plan will require that the trustee pay the back payments on the mortgage and that you make payments that are due after you file for bankruptcy. This means making payments for taxes and insurance as well. The courts can be intolerant of people who file for bankruptcy but do not take their requirement to pay their future mortgage payments seriously.
2. Be Aware of Other Liens
Remember that Chapter 13 is not limited to fixing issues with mortgage liens. You may have an option to avoid the lien altogether, or reduce the amount of the lien, whether it is a judgement or a tax lien. Just make sure that you (or your attorney) check the public record so that you know if there are any liens attached to your property.
3. Have Your Mortgage Modified
Depending on a number of factors, it may be that the best option is to pursue a mortgage modification. There is nothing in the law regarding Chapter 13 bankruptcy that stops you from modifying your mortgage with your lender. Additionally, bankruptcy judges have ruled that negotiating for a modification does not violate the automatic stay.
4. Review Your Lender’s Proof of Claim
A debtor cannot be paid for Chapter 13 unless they file a proof of claim. When the debt in question is your mortgage secured by your principal residence, it is required that a detailed attachment be presented. This must account for all payments and charges to the loans from the date that you first went into arrears. It must also have details on escrowed taxes and insurance. Make sure that this all matches your own data.
5. Keep Records of All Payments You Make
Do not assume that there will be a digital trail of all payments you make. Keep concise proof of them in a single place so that you can easily provide it if required. You will need this to show that you kept making payments as required.
Do you have questions about these or other details related to your potential bankruptcy filing? At California Bankruptcy Relief we welcome your call to (888) 748-0025 for a free legal consultation.