Will my chapter 3 be dismissed if I am late on my home mortgage? 15 Answers as of May 21, 2012

Will my chapter 3 be dismissed if I am late on my home mortgage?

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Debt Relief Law Center | Roger J. Bus
If the mortgage is "outside" the Plan (e.g. you are paying it yourself), then you need to catch up any arrearages. It does not really effect your 13. If it is "inside" the plan and you are behind on payments, the 13 Trustee will eventually set the case for dismissal.
Answer Applies to: Michigan
Replied: 5/21/2012
Charles Schneider, P.C.
Charles Schneider, P.C. | Charles J. Schneider
There is no chapter 3. Are you speaking of a chapter 13? An attorney needs more information than you are giving.
Answer Applies to: Michigan
Replied: 5/18/2012
Law Office of Pho Ethan Tran PLLC
Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
If you are late on your home mortgage and repayment plan, the trustee could request the court to dismiss your case. Have you thought about converting your case to a Chapter 7.
Answer Applies to: Texas
Replied: 5/18/2012
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Depends on where you are in the proceeding. In my area (Central District of California) you must be current by every confirmation hearing. After confirmation there is a little slack.
Answer Applies to: California
Replied: 5/18/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you are paying the bank directly then you do have time to get current quickly, but the lender can file a motion to dismiss your case. So catch up quick. If you are paying to the trustee, then he/she may file a motion to dismiss quickly.
Answer Applies to: New York
Replied: 5/18/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    There is no such thing as a chapter 3. (If you mean 13, the answer is usually that it will be dismissed).
    Answer Applies to: Georgia
    Replied: 5/18/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    It is likely that what will happen is that the bank will ask permission to foreclose on the home. The case might not be dismissed for failure to pay the mortgage but you could lose it in foreclosure.
    Answer Applies to: California
    Replied: 5/18/2012
    John R. McNeal and Associates, PLLC | John R. McNeal, Jr.
    I am not familiar with chapter 3, but in a chapter 13 you may be dismissed.
    Answer Applies to: Mississippi
    Replied: 5/18/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    No. Talk to a competent chapter 13 bankruptcy attorney about your options.
    Answer Applies to: Arizona
    Replied: 5/18/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    No, but the bank will ask the court for permission to sell your home (forclose). Generally the trustee does not care if you pay the mortgage since it is the bank's business to protect itself by foreclosing if you do not make the house payments. Make sure you do pay the Trustee if you want to keep your case going.
    Answer Applies to: California
    Replied: 5/18/2012
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    There is no bankruptcy chapter 3. I believe you mean a chapter 13. What will happen if you fail to make your payments to your mortgage company is they will probably file a motion for relief from stay. If they filed this then even though you make your payments to the trustee you may lose all benefit from filing a Chapter 13 bankruptcy because your mortgage company will be able to foreclose if that motion is granted.
    Answer Applies to: Connecticut
    Replied: 5/18/2012
    Bereliani Law Firm | Sanaz Sarah Bereliani
    I believe you mean chapter 13.. If you are behind on your mortgage then the creditor will file a Motion for Relief to take the house out of bankruptcy and initiate foreclosure.. You can work out an agreement with them to catch up if you catch this in time but you should speak to your lawyer about filing an Adequate Protection Order when the motion gets filed. Your bankruptcy will get dismissed if you fall behind on your plan payment.
    Answer Applies to: California
    Replied: 5/18/2012
    Attorney At Law | Harry D. Roth
    Chapter 13? Yes, it could be. The larger issue is whether doing a chapter 13 and trying to keep your house really makes sense for you. It is a tragedy when someone loses their house. But putting good money after bad and then losing the house anyway is a bigger tragedy. If you did not look carefully at whether you could really afford this and whether it totally made sense, it is not too late. You can dismiss or you can convert to chapter 7, even if your plan has already been confirmed. If you are struggling to make your mortgage and your plan payments, and the cause is not something temporary, think this all the way through before you continue.
    Answer Applies to: California
    Replied: 5/18/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    Not necessarily, but it is a good idea to make sure all the payments are made in your plan.
    Answer Applies to: Florida
    Replied: 5/18/2012
    Wajda Law Group, APC
    Wajda Law Group, APC | Nicholas M. Wajda
    I am assuming you meant Chapter 13. No, falling behind on your mortgage does not directly lead to a dismissal of your entire plan. However, if you fall too far behind home loan creditor will file a motion for relief from the automatic stay asking to remove the home from the bankruptcy. Removal will allow the lender to move forward with foreclosure or other state collection rights.
    Answer Applies to: Nevada
    Replied: 5/18/2012
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