How Is My Mortgage Treated In Ch. 13 Bankruptcy

Current Mortgage Payments -Indiana bankruptcy courts require you to pay your mortgage payments inside the plan.  It is not possible to modify the interest rate by filing bankruptcy.  A few clients have been successful at modifying their mortgages during the bankruptcy and getting their variable interest rates lowered to a nice fixed rate and lower mortgage payments.  Unfortunately, most people are not able to get approved for a modification but it is still worth pursuing just in case.

Past Due Mortgage Payments – The past due mortgage payments are paid in full inside the plan with 0% interest over a period of 3 to 5 years.  After the plan is completed, you should be current with your mortgage payments.  In South Bend, the trustee will actually contact the mortgage company and obtain verification that your mortgage is current and there are no issues.

Once the Plan is Completed – Once you complete the plan, you will be responsible for making the mortgage payment directly to the mortgage company again.