I filed a Chapter 13. What happens to my mortgage after the 5 year term is over? I will still owe money on the house.

Asked almost 4 years ago - Spokane, WA

My husband and I filed for Chapter 13 and have been making monthly payments. I wanted to know what happens after our plan is over and we still owe on our mortgage.

Attorney answers (3)

  1. Jacob D DeGraaff

    Contributor Level 11

    Answered . If you complete your Chapter 13 plan and receive a discharge, your mortgage should be current at that point. You will continue making regular mortgage payments for the term of the loan (or face foreclosure if you fall behind on payments) just as if you had never filed bankruptcy.

    However, if you do not reaffirm the mortgage debt, you will not be held personally liable for the debt should you later lose the house in a foreclosure.

  2. Theodore Lyons Araujo

    Pro

    Contributor Level 20

    Answered . The secured debt on the property you keep is not changed. The interest rate, amount you owe, and payments stay the same.

    You should be making the mortgage payments in addition to the Trustee payments, unless you are paying off the mortgage in the plan. In that case, you should talk to your attorney and make sure that the mortgage will be satisfied in whole and that you are making the proper payments for the real estate taxes.

  3. Mitchell Paul Goldstein

    Contributor Level 20

    Answered . The easy answer is nothing. If you were behind when you filed, you or your attorney might want to consider filing a Motion to Declare the mortgage current to avoid future problems.

    Other than that, just keep paying, as it is not discharged in the Chapter 13. The mortgage company should continue to report the mortgage on your credit report and should report it as current.

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