Louisville, KY asked in Bankruptcy and Foreclosure for Kentucky

Q: How do Stop A Foreclosure,When Miss A payment by Mistake when your in Chapter 13 Bankruptcy Program?

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3 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
  • Bankruptcy Lawyer
  • Boyertown, PA

A: When in an active bankruptcy case, especially a Ch. 13, there is an automatic stay of any actions against the property of the debtor's estate and/or the debtor, to collect a debt.

In order to proceed with a foreclosure case in a non-bankruptcy court, the foreclosing creditor must first file a motion in the bankruptcy court to request relief from the stay in order to file/proceed with a foreclosure case. While that motion is pending, it is common for a debtor, through counsel, to negotiate an agreement with the creditor to cure the mortgage debt arrearage over some period of time.

To answer your specific question, on the scant facts given, a creditor who wishes to foreclose is already "stopped" by the automatic stay.

Your best path is to confer with bankruptcy counsel and cure the mortgage arrearage.

Timothy Denison agrees with this answer

Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY
  • Licensed in Kentucky

A: Get the missed payment made up asap and ask the court to accept it.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Bankruptcy Lawyer
  • Sacramento, CA

A: If you've missed a mortgage payment by mistake while in a Chapter 13 bankruptcy, it is critical to address the issue promptly:

1. Contact your bankruptcy attorney immediately to discuss the situation. They can provide guidance specific to your case and may be able to negotiate with the lender on your behalf.

2. Cure the default as quickly as possible. This might involve making the missed payment and any additional fees or penalties to bring the mortgage current.

3. Your attorney may suggest filing a motion with the bankruptcy court to allow you to cure the missed payment over time if you cannot make it up immediately.

4. Communicate with your mortgage lender to inform them of the error and your plan to correct it. They may be willing to work with you to avoid foreclosure.

5. Ensure the payment processing issue that caused the missed payment is resolved so it does not happen again.

6. Keep records of all communications and payments related to the mortgage and your Chapter 13 plan.

7. If the mortgage company has started the foreclosure process, your attorney can help you determine if a bankruptcy court's automatic stay is still in place and can be used to temporarily halt the foreclosure.

8. Attend all court hearings related to the foreclosure and follow all court orders.

Acting swiftly can help prevent foreclosure and keep your Chapter 13 bankruptcy plan on track.

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