White Haven, PA asked in Bankruptcy for Pennsylvania

Q: Is it a must to have my mortgage paid before it goes into grace period when trying to file for chap 7

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1 Lawyer Answer
Donald M. Hahn
Donald M. Hahn
  • Bankruptcy Lawyer
  • Bellefonte, PA
  • Licensed in Pennsylvania

A: Paying during the grace period is still paying late. If a bankruptcy petition were filed after the date the mortgage payment was due but before the date the mortgage payment was actually made, the debtors go into the bankruptcy case behind on their mortgage. The post-petition payment should technically be credited to the next month's payment, rather than the prior month's payment, because the prior month's payment became due before the case was filed. In a Chapter 13 case, this creates a pre-petition default which should be addressed in the plan. However, in a simpler Chapter 7 case, I cannot see where this makes a difference.

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