Mortgage payments

[hada76]

I'm new at this. DH is filing probably next week. We have the mortgage payment due next week as well. I've heard not to pay and it will go into arrears. We got behind, then got caught up but other areas are now suffering. Can you please break this down? What does that mean exactly to filing? How long should we not pay it? Late fees?

We had an investment property and we are going to stop paying that as well because we will surrender the house. My BIL leaves there and his unemployment checks were helping out but his benefits just expired. We told the attn. the place is vacant. How long do you think he has before the bank evicts him? We are in FL.

[pepperoncini]

It depends on many variables...I'd guess he'd have at LEAST 90 days...probably more like 6 months.

But that's just an educated guess based on experiences here - in Iowa.

[justbroke]

I'm new at this. DH is filing probably next week. We have the mortgage payment due next week as well. I've heard not to pay and it will go into arrears. We got behind, then got caught up but other areas are now suffering. Can you please break this down? What does that mean exactly to filing? How long should we not pay it? Late fees?

You can pay arrears in your Chapter 13. This allows you to makeup missed payments over the life of your Chapter 13 plan. So, you could cure the arrears in 36-60 months! SO if you were 6000 behind, you'd pay $100/month for 60 months. No interest!

We had an investment property and we are going to stop paying that as well because we will surrender the house.

Had?

My BIL leaves there and his unemployment checks were helping out but his benefits just expired. We told the attn. the place is vacant. How long do you think he has before the bank evicts him? We are in FL.

Why would you lie to your own attorney? You gain nothing from that. Just include the investment property in the Bankruptcy and wait for the procedure to run its course.

Since you haven't stopped paying on the investment property, they can't foreclose until you are in default and they follow your State's underlying non-bankruptcy process for foreclosure. It will be at least 6-9 months before the place is sold at auction... and that's for Florida. I had a home go 18 months before foreclosure. Your mileage will vary but since you're CURRENT, it will easily be 6-9 months AFTER you stop paying, before anything is going to happen in Florida.

Florida is a judicial foreclosure State meaning that it must go through the Courts and they are backed up!

[hada76]

He told the lawyer it was vacant because he didn't claim the "rental income" because we have paid so many, many months for his brother to live there. Right, wrong or indifferent. He said he'll call him tomorrow.

DH is concerned about not paying the primary mortgage because he was going to open a bank account with them, Chase. Right now we have Wells Fargo and heard they will freeze the account. However, I prefer not to pay so we could easily pay the lawyer and clear my CC balance (since I'm not filing). Do you know if Chase will freeze his bank account if we get one month behind on the mortgage? IYO, would you pay?

[justbroke]

He told the lawyer it was vacant because he didn't claim the "rental income" because we have paid so many, many months for his brother to live there.

My point was that you should never say false things to your attorney when you know them not to be true. Simple as that. Your attorney can't repeat what you say. They are there to provide you with expert legal advice and protect you.

DH is concerned about not paying the primary mortgage because he was going to open a bank account with them, Chase. Right now we have Wells Fargo and heard they will freeze the account. However, I prefer not to pay so we could easily pay the lawyer and clear my CC balance (since I'm not filing). Do you know if Chase will freeze his bank account if we get one month behind on the mortgage? IYO, would you pay?

I would not have money in ANY bank where you have credit products. Bank of America was very nice to dip into my personal checking and savings accounts to pay my bills without me asking them to. Just get an account at a Neutral Bank! Move your money and your direct deposits (if any). Don't take the chance, even though Wells Fargo was recently spanked for freezing accounts.

Also, HE should not be paying down your accounts. This may be construed as a preferential payment and recovered to pay his creditors. Not that it would come out your pocket, but it would defeat the purpose and potentially have you in trouble with your creditors.

Just be open with your attorney and inform him of what your plan is so that he can evaluate it and give you the best advice on how to proceed. Asset protection is important, but if you do it wrong or don't provide your attorney with accurate information, he can't protect those assets.

[hada76]

This is helpful information. I totally agree with the lawyer statement. He's had the intial consult w/the lawyer. With my credit card, it has his name on it as well, and @ $800 of his expenses - then is it ok? Should I take him off the card? Also, what happens if you don't remove the direct deposit? He works from home, so it would have to come via mail. We share a joint account to pay utilities and such, is that ok? TIA!

[momofthree]

This is helpful information. I totally agree with the lawyer statement. He's had the intial consult w/the lawyer. With my credit card, it has his name on it as well, and @ $800 of his expenses - then is it ok? Should I take him off the card? Also, what happens if you don't remove the direct deposit? He works from home, so it would have to come via mail. We share a joint account to pay utilities and such, is that ok? TIA!

No, ESPECIALLY not okay if it has his name on it. He should not make any payments of over $600 to one card. He shouldn't be making payments to any of his debts (or your debts) if he intends to file. You should be paying your debts if he's the only one filing....

[debthlp]

We are also starting soon too and my lawyer said that we don't have tot pay the mortgage payment this month and they will roll it into the payments. Is that true? We can take that money to pay the lawyers fees to start the process.

[newbie2]

We are also starting soon too and my lawyer said that we don't have tot pay the mortgage payment this month and they will roll it into the payments. Is that true? We can take that money to pay the lawyers fees to start the process.

Yes, if you are filing a Chapter 13 any arrears in your mortgage can be added to the plan.

[SMinGA]

To clarify - in case its not already clear enough - if your husband is filing bankruptcy he should not pay any unsecured debts. If you have credit card balances, you may pay on them. Your husband should not. It may not seem like much of a difference, but its an important one.

If you do not pay the mortgage for July & August (and file in August, its already 1/2 way thru July and seems you still have some work to do to prepare to file) then the July+August payments would be repaid thru the ch. 13 plan.

As to the rental property - if the rent you were receiving was less than the mortgage & upkeep of the property, I don't see how there would be 'rental income' to report. Always best to be 100% honest with your attorney - if not the advice you get is not accurate and its not the fault of your attorney if things end up going very badly for you as a result.