Legal Question in Bankruptcy in Texas

Creditor's accrued mortgage interest disposition in bankruptsy of a debtor

How does a mortgage holder (private) update his position during a creditor's bankrupsy case to be sure accrued interest on a mortgage is not omitted in the final settlement. Declaration of the initial debt does not account for accruing interest while the case is being reviewed (Chapter 13).


Asked on 10/17/00, 3:36 pm

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Creditor's accrued mortgage interest disposition in bankruptsy of a debtor

I am assuming that you are the creditor and that you are interested in getting the interest on your note. In a Chapter 7 the debtor either reaffirms the debt and continues to pay according to the note terms or you may foreclose on the property. In a Chapter 13 the debotr includes payment of the debt in the Chapter 13 Plan, or you may foreclose. Foreclosure may be done only after the automatic stay is lifted.

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Answered on 11/28/00, 11:10 am


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