By: Daniel Stone
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Bankruptcy stopped foreclosure – what next ?
When my Chapter 13 bankruptcy clients initially consult with me, we first review the acute issue at hand – the sale of their home or foreclosure. The debtors first learn that the sale will be stopped by the bankruptcy filing. But what next? My clients are always told of the second phase of Chapter 13 which is making trustee payments and resuming mortgage regular mortgage payments post filing. My clients need to know this information because if they don”t know and they cannot afford the payments going forward, maybe saving the house in the first place was a waste of time. In addition , the following are some things the debtor will need to do in his or her next case after the sale date has been stopped. This is not an exhaustive list but it has some good ideas:
1. Make sure all required documents are into Trustee well in advance of 341
2. Arrive at 341 hearing 30-45 minutes early with drivers license and social security card
3. All appropriate motions need to be filed early such as motions to determine tax liability.
4. Creditor objections dealt with
5. Trustee objections dealt with
6. Trustee follow up notes at 341 meeting need to be answered and dealt with
7. Confirmation hearing
8. Motion or objection hearing
9. Amended plans and schedules to solve creditor and trustee complaints
10. Review and make sure client is making proper trustee payments on time as well as the proper post filing mortgage payment. Finally , I want to see if my client has started loan modification discussions with their lender and if they are knowledgeable of the types of relief available in chapter 13 while they are in it.