Hi, Newbie Question on Cpt 7 and paying mortgage while planning not to re-affirm.

[bkzips]

We are signing our file to start BK7 on Monday.
We are paid on Friday. We have August and September Pymt due.

If we want to do a ride through in this BK 7, do I need to be current with payments? Is it okay to be past due one month?
We can do it, but it leaves us tight and w/o ability to get food for 2 weeks.
We want to file the BK 7 before EOM to avoid showing a minor raise DH finally received after a 5% reduction for the last 2 years.

Must I be perfectly current during the BK 7 proceedings?
Is it actually okay to pay my Mortgage during BK 7 - but no other debtors?
Am I expected to keep all my utilities current?

Thanks for any help today!

[ccsjoe]

HI bkzips.

First, what do you mean by we are paid on Friday? I assume that's when you pay your fees to file CH 7 on Monday?

As far as mortgage, yes, you do need to be current, however, you may wish to contact lender and let them know that 1. you'll catch up now, and 2. one payment will be two weeks late (so you can afford groceries, etc). In other words, tell them what to expect so they have no suprises from you and vice versa.

As far as utilities, yes, keep them current.

As far as "perfectly current" yes and no, read above. It is ok to pay your secured creditors on items that you will retain (not necessarily reaffirm, but retain). Also ok to pay your utilities, please do!!

Good luck.

[tobee43]

Am I expected to keep all my utilities current?

if you want your water and lights to stay on...yes, there are certain bills you need to continue to keep up.

if you intend to reaffirm the house, i would ask your attorney if you should keep paying or stop. we stopped, however, did not reaffirm the property and surrendered it.

your attorney will advise you to immediately stop all payments to your charge card companies...as well.

you have not explained your situation completely so it's somewhat difficult to know what you mean by paid on friday...do you mean paycheck or your attorney will be pd in full on friday so you will be filing?

[bkzips]

Thank you, both answers gave me what I need to know.
Sorry on the Friday pay line. That was, we get our Pay Check on Friday and We pay lawyer and mortgage and file on the following Monday.

[tobee43]

well, if you are not going to keep the house and surrender it, i would not pay the mortgage...however, if you intend to keep it...it may be best, because you will to work with the bank on the late payments.