January 25th, 2010 by Reed Allmand 
Most debtor/homeowners facing foreclosure and considering bankruptcy are significantly delinquent on their mortgage payments. But whether you’re 1 month behind on your mortgage payment or 6 months behind, Chapter 13 bankruptcy can help you catch up with your payments and return your mortgage to good standing. Here’s how it works:
- When you file bankruptcy you will include your mortgage lender’s information and tell your bankruptcy attorney how far behind you are on payments. This information will be included in your bankruptcy filing.
- When you actually file bankruptcy and create a repayment plan, you can include your mortgage loan’s delinquent payments in bankruptcy repayment plan. For example, if you are 3 months behind (ex. $3000), that would be included in your bankruptcy repayment plan. Remember, Chapter 13 bankruptcy allows the debtor to repay their debts over a period of 3- 5 years. So you won’t be paying that large amount of money one lump sum. It will be manageable.
- During your Chapter 13 bankruptcy (3 – 5 years) you will slowly repay your late mortgage payments plus your regular mortgage. For example, if your mortgage is $1000 per month and you are 3 months behind on payments, you might repay those late payments in $100/month increments. So instead of paying just $1000/month, you would pay $1100/month to the bankruptcy trustee.
Remember, if you want to keep your home during bankruptcy you MUST repay any late mortgage payments, plus your regular mortgage and those payments must be made on time. Once your complete your Chapter 13 bankruptcy repayment plan, you will be up-to-date with your mortgage payments and in good standing with your lender.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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