Legal Question in Bankruptcy in Pennsylvania

reinstating my account

I have proceedings taken agaist me by my mortgage company. I filed for chapter 7 last fall. I only sent in a partial payment in November and sent in a full payment in December I sent in a check to pay the remaining amount of the November payment in, in the middle of December and they turn the check over to their lawyer and did not credit it to my account. I requested the amount to reinstate my account from my Mortgage companys lawyer. If I pay the amount to reinstate my account, will that stop the forclosure proceedings? If not, what alternatives do I have? Will it help if I change my case to a Chapter 13?


Asked on 1/18/06, 4:45 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: reinstating my account

If you are in a Chapter 7, the automatic stay will be unaffected by a conversion to Chapter 13. You could ask for the stay to be reimposed once you convert, but that is uncertain.

You could wait for the discharge and closing of your current case and plan to file a Chapter 13 at that point. However, you will have to file a motion to extended the stay beyond 30 days of filing. If you qualify for Chapter 13, the motion should be granted. The only other issue is the effect of not receiving a discharge in the Chapter 13. Since the primary purpose of the 13 will simply be to cure any default, the prohibition should not matter.

If you can pay all back money, including late charges, attorney�s fees and costs, you can reinstate the mortgage and not have to worry about a Chapter 13.

You may feel free to call or E-mail me on a free initial basis.

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Answered on 1/24/06, 1:32 pm


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