What should I do? I can't make my house payment and I don't want to lose my house! Help!

If you are making your house payments directly in your chapter 13 case, and you can't make a full house payment then this is our best advice.

1. Take a deep breath!  One of my clients pointed out that the creditor can't eat you. 

2. Don't make anything less that the full payment or the full payment plus any late fees.

3. Call my office to make a plan.

Why?  First, the mortgage companies will only apply payments as full payments.  Anything else just goes to an account called suspense.  Depending on your contract with the mortgage company, funds in suspense may be used to pay other things like attorney fees or other fees before the money is used to get your mortgage payment current.  

If we need to make a plan we might suggest letting your case dismiss and start over. Or maybe we need to work on a loan modification to get you current.  Worried that you already had one modification and you can't ask apply again?  All we can do is ask.  We have had more than one client get three or more loan modifications while they were in their bankruptcy case.


Susan Bratcher
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Owner and Attorney