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Fritz
Fritz, Attorney
Category: Bankruptcy Law
Satisfied Customers: 302
Experience:  Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases
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Im in C13. If my mortgage bank files a motion for relief

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I'm in C13. If my mortgage bank files a motion for relief from the automatic stay due to non-payment of the mortgage, will that automatically dismiss the bankruptcy or can I continue to make the payments until the bankruptcy gets discharged?

Fritz :

Hi, I'd be happy to answer your bankruptcy questions this morning.


 

Fritz :

So I see that the bank has filed a Motion for Relief from stay on your property in your Chapter 13 bankruptcy.

Fritz :

Were you making your mortgage payments through your Chapter 13 Plan, paying the bank directly outside the plan, or surrendering the property?

Customer:

Paying the bank directly outside the plan

Fritz :

Were you delinquent at the time of filing? Are you delinquent now?


 

Customer:

At the time of filing 2+ years ago, I was not delinquent. I got delinquent last year after my husband lost his job and it took the courts almost a year to lower my payment

Customer:

I agreed with the mortgage company to make up the delinquent amount over a period of 12 months

Customer:

i'm 6 months into that now

Fritz :

And they still filed a Motion for Relief from Stay?

Customer:

no. I'm getting ready to move out of state because i've gotten a new job.

Customer:

i need to figure out what to do with the house

Customer:

if i just stop paying the payments, they will file a motion for relief from stay

Fritz :

Oh, okay... let me explain your options


 

Customer:

i can't carry a house payment in ga and rent payment in nc

Fritz :

Yes, if you stop paying the payments, the bank with file a Motion for Relief from Stay and proceed to foreclose on the home once that Motion is granted.

Fritz :

Your bankruptcy will NOT be dismissed.

Fritz :

And since you're paying outside the Plan, you won't have to file a Motion to Modify your Plan.


 

Customer:

ok.

Customer:

i basically want to finish out the b/r since i'm halfway through

Fritz :

You should keep paying your monthly payments to the Trustee in order to get your discharge.


 

Fritz :

Yes, that's the best thing to do.


 

Customer:

i don't want to have it dismissed...i would rather finish it and get it discharged

Customer:

thank you.

Fritz :

Yes, that's much better - you want to discharge the mortgage debt.

Fritz :

No problem. Any other questions?


 

Customer:

you mean discharge the b/r? let the mortgage foreclose, right?

Customer:

if i keep paying the b/r, it will finish out and get discharged. i would rather have that than to get it dismissed

Customer:

right?

Fritz :

Yes, let the bank file the Motion for Relief and foreclose on the property. Meanwhile, you should continue making your payments to the Trustee.

Customer:

it's been auto deducted from my paycheck which will end in a couple of weeks. should i notify the trustee that my job is changing or just send it in myself?

Fritz :

Yes, if the bankruptcy is dismissed, you will bascially


owe the amount of the mortgage personally. You don't want that.

Fritz :

You should notify the Trustee, otherwise your case could be dismissed after you miss a few payments.


 

Fritz :

You should notify the Trustee of your new address as well (as soon as you know it).


 

Customer:

ok. i'm assuming that the trustee will allow me to mail in checks until they get my new employer set up on auto deduction?

Fritz :

Yes, that shouldn't be a problem, so long as the Trustee is notified prior to the change.


 

Customer:

ok, thank you very much, you've been very helpful

Fritz :

Thank you!

Fritz and 3 other Bankruptcy Law Specialists are ready to help you
I forgot to mention that along with informing the Trustee, you should also file a Notice of Change of Address with the Court. This way, all of your creditors will automatically have your new address. Good luck!
Fritz and 3 other Bankruptcy Law Specialists are ready to help you

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