When you file for bankruptcy you have to list all of your creditors, including those you intend to keep. For example, even though you may want to keep your home and keep paying your mortgage, the mortgage company will have to be listed in the case and receive notice of the filing. If you are thinking about filing bankruptcy or already have, you may be wondering how your mortgage company receiving notice of your filing will impact your mortgage.
Although, your mortgage company will receive notice of your filing, they will also receive notice of your intention with the property. For example, in a chapter 7 case you have to list if you want to keep your property or surrender it. In a chapter 13 bankruptcy plan you will need to list if you are surrendering your home, if it is not listed it is assumed you will keep the property.
Just because you file a bankruptcy doesn’t mean the mortgage company can automatically foreclose on your home. If you stay current on your mortgage payments, even though you have filed bankruptcy, your mortgage company should not foreclose on your home.
Finally, how you make your monthly payment may change. Unless you intend to give your home back to the mortgage lender, your mortgage company still wants to get paid. Typically after a bankruptcy is filed though, online access will shut down for most mortgage companies. This is because the mortgage company does not want to violate any bankruptcy laws. Therefore, after filing, monthly statements will likely go to your bankruptcy attorney and payments will need to be made usually by check or phone.
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For any questions you have either about your mortgage or anything else bankruptcy related, visit www.lifebacklaw.com to speak with an attorney today. You will be glad you did!
