What is an Arrearage?
An arrearage is used to describe a payment on an account that is overdue. It can be used for bank loans, mortgages and certain stocks with payments past due commonly use this term.
If a person had arrearages on their mortgage and was in fear of foreclosure, what could that person do?
In this situation, the person involved could file for a Chapter 13 bankruptcy. This particular kind of bankruptcy case immediately puts a stop on any sort of foreclosure action on a person’s house. It provides the person with an opportunity to set up a plan specific to their situation that would reinstate mortgage arrearages. This means that the person would be allowed to make arrearage payments over the period of years that the loan covers. After that time has ended, foreclosure is not possible because the loan would no longer be valid.
What can a person do after receiving a rescission of trustees deed due to certain arrearages after being discharged from a Chapter 7 bankruptcy?
In this situation, if a Chapter 7 bankruptcy has already been taken, the only other option one really has is to file Chapter 13 bankruptcy that will address arrearages owed.
Can a person file for bankruptcy against back child support if arrearages are owed?
In many situations, one can include back child support when filing for bankruptcy, but the child support arrearages will not be discharged. Since child support is considered to be a priority debt, it cannot be cancelled. When filing for a Chapter 13 bankruptcy, one should specify that child support arrearages will be paid over a 3-5-year period. Once everything has been filed, every arrearage included will be paid off.
Is there anything one can do to stall or stop a foreclosure eviction?
Once foreclosure has already been settled upon, there is not much one can do to stop it. If the lender does not provide any sort of voluntary forbearance, and if any type of payment plans for the owed arrearages have been denied, one cannot do anything. Once Chapter 13 bankruptcy has been filed for and has delayed foreclosure but did not put it off indefinitely, there is nothing the owner of the house can do except follow orders and move out.
Whether it is from poor budgeting or just not enough money made, arrearages can pop up so quickly if a payment is not made in time. They can be very messy to deal with, and cause many people lots of unwanted trouble. Arrearages can lead to filing for bankruptcy, or they can even lead to foreclosure. When questions arise, it is best to consult with the Experts.