Legal Question in Bankruptcy in Virginia

Behind on mortgage, is Chapter 7 possible?

I fell behind 3 months on mortgage. I resumed making payments in the fourth month, but stayed three months behind. A relative saw our foreclosure sale listed in the paper. We were never notified. When I contacted the lender, they set up a repayment plan which included the 3 delinquent payments, property tax advance and almost $2000 in attorney's fees for the foreclosure proceedings. In order to be considered current on the mortgage, do I need to pay all outstanding balances (advanced property taxes, attorney's fees and 3 payments) or do I need to just pay the delinquent payments? I want to be current so I can file Chapter 7 to rid myself of large medical bills and credit card bills (charges related to my wife's ongoing illness). I can make the monthly house payments but am having to let all other bills slide in order to ''catch up'' on their re-payment plan. Would it be better to catch the payments up over the next few months and then file? Is it possible that the lender would still allow us to reaffirm under chapter 7 even if we are past due? I am hesitant to contact the lender's bankruptcy department and ask because I don't want to jeopardize my repayment plan that is currently in place. Live in Virginia. Thanks.


Asked on 12/02/07, 12:07 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Behind on mortgage, is Chapter 7 possible?

First, there is no need to reaffirm a mortgage. You can just keep paying. But to be considered current, you do need to pay the missed payments, tax advances, and attorneys fees. It is certain that your note and deed of trust require you to pay these. If you file bankruptcy, you will still be able to catch up your payments (including the extra charges), provided you do it before the discharge is entered and the case is closed. You may also want to consider Chapter 13, which will allow you to cure the deficiency over a longer time. You should contact an experienced bankruptcy lawyer now and discuss what your best options are in light of your specific situation.

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Answered on 12/02/07, 10:55 am


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