Because they wish to keep their house, some people choose Chapter 13 bankruptcy versus Chapter 7 bankruptcy. Maintaining your house is not a guarantee, though. Continue reading to learn the five steps you need to take to keep your house. Call 951-755-1000 to schedule a free consultation with a knowledgeable bankruptcy lawyer at The Law Offices of Paul Y. Lee if you have any questions or are prepared to file for bankruptcy.
1. You Must Understand Your Chapter 13 Bankruptcy Strategy in Its Entirety
Generally, Chapter 13 requires that you continue making mortgage payments while you are filing for bankruptcy. The majority of the time, you will need to make payments that are due after filing bankruptcy as well as make up for missing payments through the Trustee’s bankruptcy payments. This is not always the case, though. You could occasionally be required to pay your lender directly for your mortgage. You need to properly comprehend your plan because every situation is unique.
2. Keep Careful Monitoring of Payments
You should keep a record of your payments in case there are ever any questions regarding them. Your payment history need to be comprehensive and accessible. You should receive a copy of the cancelled check, for instance, if you pay by check. Print up a receipt if you pay online.
3. Observe Your Monthly Statements Carefully
Your loan servicer must now continue to give you a monthly mortgage statement in accordance with new federal regulations. What is happening with your debt and what is being paid off through your Chapter 13 bankruptcy should be explained in this statement. These statements should be kept, and you should review them every month to make sure they are accurate.
4. Pay Attention to Payment Amounts
During your bankruptcy, your home loan’s monthly payment may alter. You may have an adjustable rate mortgage, a time-limited interest-only option, or adjustments in escrow amounts for taxes or insurance. If there are any modifications, your loan servicer is required to notify you in advance. If there are any changes, you should consult with your lawyer to determine whether the Trustee should handle the change or if it should be handled by a different party.
5. Keep Up with Your Property Taxes
Your mortgage payment may include your real estate taxes, depending on the terms of your specific loan. It is crucial that you pay your property taxes on time if they are not. If you don’t, your Chapter 13 bankruptcy could be for naught, and you could lose your house due to tax debt.
We strongly recommend getting in touch with The Law Offices of Paul Y. Lee at 951-755-1000 for a free consultation if you have any questions concerning the bankruptcy filing procedure.