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If you are in a Chapter 13 bankruptcy and you are making mortgage payments, your plan of reorganization requires that those payments be made in a timely manner.
When we use the term “post-petition” mortgage payments we are referring to those payments that come due after the bankruptcy case is filed.
Since a lot of Chapter 13 bankruptcies are filed because the Debtor is delinquent in mortgage payments, it is important for the Debtor to remain current with the post-petition mortgage payments.
If a Debtor fails to remain current on the post-petition mortgage payments, then the mortgage company will move the bankruptcy court to lift the automatic stay to proceed with foreclosure.
If the mortgage company moves the court to lift the stay, then the Debtor will likely face additional fees from their attorney and could likely face additional attorneys fees for the mortgage company’s attorney.
Because mortgage companies are not perfect in their record keeping we always suggest that you make your payments in a manner that will provide proof of the payments.
A copy of a money order, western union or cashier’s check is recommended.
If you are making the payments by personal check, then make sure you keep copies of your cancelled checks or bank statements.