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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 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 other Bankruptcy Law Specialists are ready to help you

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