Do payments on mortgage reduce your balance owed for IIB properties?

[hopejones]

If my mortgage was included in my Ch7 bankruptcy & I do a ride thru, do the payments reduce the amount that I owe to the bank, or am I just renting/throwing money down a black hole?

[HHM]

The payment should be applied like it normally would.

[hopejones]

So we will still be able to deduct mortgage interest payments on our tax return? And our principal balance goes down every month?

[chrisdfw]

Yes, because they still have a lien on the property, that is important. A proper lien is required to deduct interest as a mortgage. If you stripped a second lien in chapter 13, it would not be deductible even if you were paying it (partially at least) through the chapter 13 payment.

Since you are chapter 7 you are ok.