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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Thank you for your previous answer. Is there any benefit for

This answer was rated:

Thank you for your previous answer. Is there any benefit for an attorney to insist that future mortgage payments are included in the BK plan?
Yes, since that would reduce your future mortgage payments because of the bankruptcy.
Customer: replied 6 years ago.
Sorry, but I do not understand your answer. The mortgage payments are the same whether or not they are included in the BK plan. However, the trustee fee adds 8% (give or take) to the payment.

Can you elaborate? Thanks in advance.

Customer: replied 6 years ago.
My expert opted out. Can someone help me with this question?

Hi Customer,

Is this for a first or second mortgage?



Edited by cfortunato on 11/2/2010 at 12:06 PM EST
Customer: replied 6 years ago.
It is a first mortgage. Thanks.

It is generally best to pay secured creditors outside the plan, and this is what is routinely done. Not only does this reduce the trustee's fee, but it also provides greater assurance that the important secured loans (mortgage, car) are paid on time. If these are paid through the plan, the trustee must wait until the debtor's check clears, and then send another check to the creditors. If the check is not in place by the due date, those creditors can file a motion to lift the automatic stay.

There is no benefit for the debtor's attorney to include the mortgage payment in the plan.

 



Edited by cfortunato on 11/2/2010 at 6:02 PM EST
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience: Bankruptcy professor.
cfortunato and 2 other Bankruptcy Law Specialists are ready to help you