Legal Question in Bankruptcy in Indiana

Re: Delinquent amount in a Chapter 13 Case

The account is "delinquent" until such time as the borrower becomes completely current-usually a Chapter 13 Plan provides for cure of the back payments , late charges, costs and attorney fees owed up to the date of filing. These are cured by the Chapter 13 Trsutee thru payments made by you to him. At the same time, the borrowe resumes regular monthly payemnts to the lender. Once the Trustee has disbursed all the money owed prior to filing to the lender in the Ch 13, and the borrower is current on post bankruptcy payments, then the lender should show the account as "current" even thought the borrower may still be in the Ch 13 proceeding. Some lenders will not put the account back on current status until the Ch 13 is discharged or dismissed.

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