When you file bankruptcy you will list all of your creditors. This includes secured creditors, like mortgages. In your bankruptcy schedules you will list what you intend to do with the debt/asset. For example, you can surrender the property or keep paying on it.
When you file, if you list your intention is to surrender the real estate tied to your mortgage, the lender will either file a Motion for Relief to start foreclosure proceedings during the bankruptcy, wait until plan confirmation in a chapter 13 or wait until discharge in a chapter 7. After the discharge is granted or relief is ordered, they can proceed with normal foreclosure proceedings.
If you intend to keep the property and continue paying on it, like normal, you will continue paying the mortgage on its due date to the mortgage lender. When a bankruptcy is filed, due to the automatic stay, which stops collection efforts by creditors, your mortgage lender will likely stop online access and automatic payments. You can still pay on the property, but you will likely have to pay by phone, online or mail. Some lenders will allow continued online access, but you will likely need your attorney’s authorization to do so. The mortgage company will also stop reporting on your credit report, due to the automatic stay. Statements may also stop being sent to you, but you can still speak with the mortgage company about your account, with your attorney’s authorization.
If you file bankruptcy and want to keep your property secured to a mortgage, continue making your monthly payments on time, like normal.
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