Filed Chapter 7 in Nevada. How long is my protection?

[Nevadaguy]

I am about 1 month late on my mortgage payment due to a job loss. I filed a Chapter 7 in Nevada in May. I was current on the mortgage up until June 1st.

How long is my protection in a Chapter 7?

The mortgage company said I would have to get 3 months late before they start foreclosure proceedings. However, I will have the money to get current by the end of August, and not go over 3 months.

I was just curious about how long the protection might be in the Chapter 7.

Thank you.

[justbroke]

Until you receive your discharge you are protected by the automatic stay. That doesn't mean that the creditor won't or can't file a motion for relief from the automatic stay (RFS). You'll have four mortgage payments due if you pay in late August, plus the late fees.

Since it's about 30 days from filing to the 341 Meeting and 60 days from the 341 Meeting to be eligible for discharge, you are looking at a discharge date somewhere in August. Again, that doesn't mean that the creditor won't go for an RFS in advance of that date.

[Nevadaguy]

Until you receive your discharge you are protected by the automatic stay. That doesn't mean that the creditor won't or can't file a motion for relief from the automatic stay (RFS). You'll have four mortgage payments due if you pay in late August, plus the late fees.

Since it's about 30 days from filing to the 341 Meeting and 60 days from the 341 Meeting to be eligible for discharge, you are looking at a discharge date somewhere in August. Again, that doesn't mean that the creditor won't go for an RFS in advance of that date.

Thanks for the reply. Well, late August is only 3 behind, June, July August 1st. I barely have enough to pay, but since I have no late fees, I am going to wait. I also have a very low payment because of 3% interest rate on the house and I own about 1/2 of the house. I definitely don't want to give them any ideas of taking my house, with so much equity. I know they love to go after homes with lots of equity.

I was happily surprised not to incur late fees right now either.

Take it easy.

[justbroke]

It is likely that they are holding back the late fees because of the bankruptcy. When the system is updated to show you not in bankruptcy, expect the fees to come back. You may even have a bankruptcy fee added of at least $250. What I'm saying about your August payment is that 4 payments will be due (one on September 1). Because of the way the banking (computer) system works, your payment of 3 payments in late August will likely be put into suspense until you are actually caught up completely. I know, it's a pain and the computer systems are completely unforgiving at times.

I just don't want you to get into a spiral where the late fees are tacked on, the creditor/servicer puts the payments into suspense, and you can never catch up.

[Nevadaguy]

It is likely that they are holding back the late fees because of the bankruptcy. When the system is updated to show you not in bankruptcy, expect the fees to come back. You may even have a bankruptcy fee added of at least $250. What I'm saying about your August payment is that 4 payments will be due (one on September 1). Because of the way the banking (computer) system works, your payment of 3 payments in late August will likely be put into suspense until you are actually caught up completely. I know, it's a pain and the computer systems are completely unforgiving at times.

I just don't want you to get into a spiral where the late fees are tacked on, the creditor/servicer puts the payments into suspense, and you can never catch up.

Lucky to have a low payment on the mortgage, so it will be easy to recover once I get back to work.

I know the Chapter 13 is great if people want to stay in their home, as they can stay (in many instances) in their home for the entire time they are in the Chapter 13, from what I understand.