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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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when filing for a bankruptcy, do I need to start paying the

Resolved Question:

when filing for a bankruptcy, do I need to start paying the mortgage company even if my house is in foreclosure and the lender has told me not to make anymore payments at this point. I am currently doing a loan modification at the same time as the BK, filing a chp. 13. Reason for BK is for IRS and FTB debt.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

So sorry to hear of your dilemna. I will strive to provide you with legal information to assist you.

I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information on this open and nonconfidential forum.

Once a bankruptcy is filed, the lender cannot take any action outside of the bankruptcy court. This includes foreclosure and modification.

Here is why.

Once a bankruptcy is filed, the automatic stay of the bankruptcy court is in effect Bankruptcy Code regarding the automatic stay. 362 (4)k provides for actual and punitive damages for the willful disregard of the automatic stay.

Perhaps your attorney is negotiating a modification prior to filing the bankruptcy petition. If that is the case you will want to pay only such payments as your attorney tells you to pay according to the plan

Good luck
Customer: replied 6 years ago.
I have a different person handling my modification. My bankruptcy attorney states I shouldn't worry about the modification because we had to hurry and file the chp. 13, due to the IRS threatening to put more leins on my property. Therefore the modification became secondary. I really do need the modification even only if it puts me in a fixed loan instead of what I currently have. My loan starts to adjust in 2011 and I am afraid I won't be able to make the payments. Both my BK attorney, and Loan Mod. keep telling me different things. So confused.
Expert:  Ellen replied 6 years ago.
I suggest that you meet jointly with the attorney handling your loan modification and the attorney handling your bankruptcy to develop an agreed course of action. The loan modification cannot be handled independent of the bankruptcy
Ellen and other Bankruptcy Law Specialists are ready to help you