How to Notify a Mortgage Company of Chapter 13 Bankruptcy
Filing a Chapter 13 bankruptcy case allows you the ability to develop a payment plan through which you pay off most of your creditors over a two- to five-year period of time. If you have a home mortgage loan, that debt will become a part of your overall Chapter 13 bankruptcy plan. In considering pursuing a Chapter 13 bankruptcy, you need to understand how to notify a mortgage company of your Chapter 13 bankruptcy. Your mortgage lender needs to be advised of the case so that your home loan becomes a part of the bankruptcy case.
- Difficulty:
- Moderately Easy
Instructions
Things You'll Need
- Letter to home mortgage lender
- Petition for Chapter 13 bankruptcy
- Matrix of creditors
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Draft and send a letter to your home mortgage lender before filing for bankruptcy. You are not legally obligated to send such a letter. However, by taking the step to notify your home mortgage lender of your desire to file a Chapter 13 bankruptcy, you will open an important line of communication with this important creditor.
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Obtain from the clerk of the bankruptcy court the documents required to start a Chapter 13 bankruptcy. These materials include the petition for Chapter 13 bankruptcy as well as the matrix of creditors. You get these forms from the office of the clerk in person r from the Internet website maintained by the court.
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Complete the petition, the matrix of creditors and related documents. The matrix is the listing of all creditors. Include your home mortgage lender on the matrix. In addition to the name of your home mortgage lender you also need to include its address, your account number, and the balance due and owing to that creditor.
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File the petition and related documents with the clerk of the bankruptcy court. The filing of the petition with the matrix of creditors triggers the bankruptcy court to send an official notice of the Chapter 13 bankruptcy case to all of your creditors, including in your home mortgage lender. The official notice is called a "proof of claim form." Your home mortgage lender uses this form to make its own claim in your bankruptcy case.
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