What happens if I get behind on mortgage payments while I am in a Chapter 13?You made the decision to file a bankruptcy and decided to keep you home. You file a Chapter 13 and are making your mortgage payments and your Chapter 13 plan payments as scheduled. Something comes up and you get several months behind on the post-petition mortgage payments. Now what? Several things will happen…First is that the attorney for the mortgage company will likely contact your attorney let you know that payments are delinquent.

What is a wage order and what are the benefits?A wage order in a Chapter 13 is where a portion of your Chapter 13 plan payment is automatically deducted from your paycheck by your employer. Your employer then sends the money directly to the trustee.If you are paid bi-weekly then the monthly payment will be prorated. For example, if your Chapter 13 plan payment is $300 then $138.46 would be taken out of each paycheck.Benefits to wage order:                                       

• Presumed current if less than 10 days late

By Mary Ann Pekara
Detroit filed for Chapter 9 bankruptcy protection in U.S. Bankruptcy Court in the Eastern District of Michigan today.
Detroit will now enter into a 30-90 day period to determine whether or not the city is eligible for Chapter 9 protection and all creditors will have an opportunity to fight for who will get a piece of the $18.5 billion debt.

Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for July 18, 2013 Once Listed For $125 Million, The Versace Mansion Heads To Bankruptcy Auction Detroit files for bankruptcy protection Real Housewive’s  Peggy Tanous’ Fake Marriage, Claims She’s Divorced In Bankruptcy Filing

This is a common question among debtors who either don’t own their home, or are still making mortgage payments.  Some homeowners worry about what will happen to their house when they file bankruptcy.  It helps to understand your options prior to filing based on your unique situation. In most cases, debtors end up keeping their [...]

I get this complaint all the time:  “My mortgage company is not reporting that I am paying my mortgage payment on time each month because I did not reaffirm their loan.”  

Bankruptcy may help stop a number of collection attempts from creditors depending on your situation.  Many people have a habit of ignoring or neglecting collection notices from creditors and wait too long to begin the filing process.  Meaning in some cases, it may have made sense legally to file sooner to avoid further action being [...]

Written by: Robert DeMarco

Written by: Robert DeMarco