Maple Park bankruptcy attorney explains that the most common use of a Chapter 13 bankruptcy is to save a home that is in foreclosure. Chapter 13 allows for the repayment of mortgage arrears over a three-to-five-year period, so you can really stretch out the timeframe in which you have to pay back mortgage arrears under Chapter 13. The key to a Chapter 13 is also that you are able to make your regular mortgage payment – again, post-petition, on time every month from the date your case is filed going forward. You have to make your regularly scheduled mortgage payment as it becomes due after your case is filed. For this reason, timing of your Chapter 13 bankruptcy claim when you’re paying back a mortgage is critically important. For example, if your mortgage payment is technically due on the first of the month and you file your bankruptcy case on the 27th of the month, then within 3 or 4 days you have to be prepared to make your regular mortgage payment on time once again. This is where being an experienced and skilled bankruptcy attorney comes in handy.
If you are a Chapter 13 bankruptcy client of mine and your mortgage payment is due on the first, I am going to make sure that I file your case shortly after the first – let’s say on the second or the third. By filing your bankruptcy case under Chapter 13 on the second or the third of the month when your mortgage payment is due on the first, that gives you a cushion of almost a full month to be prepared to make your regularly scheduled mortgage payment once again. A lot of cheap bankruptcy lawyers do not understand this concept, and they believe that you have 30 days after filing the Chapter 13 bankruptcy to make your mortgage payment. This is a misnomer. The 30-day period that most attorneys are talking about is the timeframe in which you need to make your Chapter 13 plan payment after the case is filed. Your mortgage payment is something different. You have to make your next regularly scheduled mortgage payment after your case is filed. So you can see where if somebody does file on the 27th and they have to make a mortgage payment on the first, this could cause a problem. Why not give clients the benefit of that additional timeframe and give them almost a month to make their regular mortgage payment again?
These are the kind of tips, this is the kind of information, that you will not get from cheap bankruptcy lawyers. This is the kind of information that you are going to get from a seasoned, skilled, experienced Chapter 13 bankruptcy lawyer. And this experience and this knowledge does not come overnight. I believe it takes anywhere from three to ten years to really be competent in all facets of bankruptcy law.