In a Chapter 13 Bankruptcy you can pay mortgage arrears, or back due payments, through your plan.  To complete your plan, you will need to stay current on your ongoing mortgage payment, which can be paid through the plan or outside the plan.  On occasion, things come up, and debtors are unable to make the ongoing mortgage payments.  If you miss payments while you are in a bankruptcy, your mortgage company can file a motion for relief from stay or a motion for adequate protection.  This motion will assert, in one form or another, that you have not made post-petition payments as required by the bankruptcy code and that the creditor would like the automatic stay to be lifted.  If you are not current, there is a good chance that they stay will be lifted.  Once the automatic stay is lifted your mortgage company may begin foreclosure proceedings and you may lose your home. However, there may still be options available.  In some cases, lenders will  consent to a stipulation agreement.  At its core this simply means that the two parties have come to an agreement on some matter.  Within a bankruptcy context, it means that the parties agree that the payments are past due.  Further, you can take you back due post-petition payments (any missed payments since you have filed for bankruptcy) and pay them in payments over a six month period.  If you do a stipulation agreement you will be required to pay your stipulation payment, or "stip payment", in addition to your ongoing mortgage payment.  It is important to note, that at this stage, your lender may have added attorney's fees or court costs to the amount you owe, all of which will have to be paid within six months.  If you miss any payments, either stipulation payments or your ongoing mortgage payments during this time, the creditor will likely pursue the motion for relief and may foreclose upon your house. If you cannot afford this option you will want to speak to your attorney as soon as possible about your options with regard to your property.  Once a motion for relief is granted there is very little that can be done.  A motion for relief does not necessarily mean that your lender will foreclose upon your property, but it does mean that they legally can should they choose to pursue this option.If you still have questions, or would like to schedule an appointment, contact a St. Louis Bankruptcy Attorney today!

A case involving an elderly woman and egregious violations of the discharge has generated a bit of buzz in the blogosphere. I first noticed it here on the Huffington Post. I decided to write about this case because I was frustrated with trying to verify the posts and because I think ithe case offers a good example of how to efficiently deal with a discharge violation. The case is In re Anita Smith, No. 6:08-bk-01035, which can be found here. What HappenedThe Debtor filed a chapter 7 petition on February 15, 2008. One of the debts that she listed was a mortgage debt owing to Countrywide Home Lending. The debtor surrendered the property during the chapter 7. The Debtor received a discharge on June 6, 2008 and Countrywide received notice of the discharge. Bank of America acquired Countrywide and obtained a judgment of foreclosure upon the real property. At some point, Bank of America began calling the Debtor to try to try to collect upon the debt. Neither the opinion nor the motion say when the calls started, but on June 24, 2010, the Debtor's lawyer sent a polite letter to Bank of America informing them that they were violating the discharge. The calls continued. In fact, at least fifty calls were made after the first letter.The Debtor's attorney sent a second letter on November 16, 2011. The second letter informed Bank of America that the Debtor "is 79 years old, in deteriorating health, and has been hospitalized recently." The calls continued.The Debtor called Bank of America twice in November and December 2011 to ask them to stop calling.The calls continued. There were forty-nine calls during a three week period from November 16, 2011 to December 6, 2011.At this point, Debtor's counsel filed a Motion to Reopen the Case and a Motion for Sanctions.Bank of America did not appear for the sanctions hearing.The Court's RulingThe Court did not have any problem finding a violation of the discharge. It stated:Bank of America's behavior was intentional, egregious, and extreme. It blatantly and willfully ignored the discharge injunction, despite having received multiple notices of the discharge and requests to discontinue its collection efforts. Bank of America acted in bad faith. Its repeated telephone calls to the Debtor were vexatious and oppressive. Bank of America committed ninety-nine separate willful violations of the Debtor's discharge injunction.Opinion, p. 5.The Court awarded actual damages of $10,000.00 for "significant aggravation, emotional distress, and inconvenience." Opinion, p. 5. The Court stated:Emotional distress constitutes actual damages. (citation omitted). Emotional distress is expected to occur where the conduct is egregious or extreme. (citation omitted). Significant emotional distress is readily apparent where the conduct is egregious and corroborating medical evidence is not required. (citation omitted). Entitlement to emotional distress damages exists "even in the absence of an egregious violation, if the individual in fact suffered significant emotional harm and the circumstances surrounding the violation make it obvious that a reasonable person would suffer significant emotional harm. (citation omitted.).The Debtor's emotional distress is readily apparent due to Bank of America's intentional, egregious and extreme conduct. She is not required to present corroborating medical evidence. (citation omitted).Opinion, pp. 8-9.The Court awarded actual damages of $10,000.00 and attorney's fees of $1,500.00.What the Debtor and the Debtor's Attorney Did RightMy firm is in the unusual position that we both represent debtors in bankruptcy and defend debt collectors accused of violating the stay or the discharge. In the former capacity, it is not unknown to get hit with a complaint that goes on for pages and pages of boilerplate allegations based on a few isolated contacts with no cease and desist letter from counsel.In this case, counsel sent not one but two cease and desist letters. In the second letter, counsel specifically informed Bank of America that his client was elderly and, as a result, very sensitive, to continued calls. Counsel also had the Debtor document the continuing violations. The Motion for Sanctions details forty-nine (49) specific violations, identifying them by date and time.Debtor's counsel also showed considerable restraint in filing a motion for sanctions rather than a complaint. While many plaintiff's lawyers prefer to file an adversary proceeding, there is no reason why contempt cannot be dealt with by motion. In this case, the debtor's attorney was able to proceed from motion to written opinion in a mere six weeks with only five hours of attorney time. Debtor's counsel was able to obtain relief for his client in a prompt, efficient manner. In my opinion, counsel placed his client's well-being ahead of his ability to recover fees, which is commendable.A Note on Accuracy in the BlogosphereBlogs sometimes get a bad reputation. When my daughter was doing a research project recently, her professor forbade the use of blogs as authority on the basis that they were "just someone's opinion." At A Texas Bankruptcy Lawyer's Blog, I make it a practice to provide case citations and links to original documents so that the reader can verify the accuracy of my comments. In this case, neither the initial post from The Bankruptcy Law Network nor the followup on The Huffington Post, provided much information from which the facts could be verified. Indeed, it is entirely possible that we are writing about different cases. I found the case that I wrote about above by researching recent opinions from Judge Arthur Briskman involving Bank of America. However, the case that I wrote about involved ninety-nine (99) violations, while the other posts refer to a case with thirty-eight (38) violations. While the failure to provide attribution may have led me to a more egregious case, it could just as well have caused the reader to dismiss it as unsubstantiated rumor.

What is a motion for relief?A motion for relief is filed by your creditor who has a secured interest in your property, such as a motor vehicle or your residence. If you don’t make your monthly payments to the trustee and you fall behind, your creditor most likely will file a motion for relief from the automatic stay. The automatic stay protects you from actions of your creditors. When the motion for relief is granted, the car creditor can repossess your vehicle and the mortgage company can start foreclosure proceedings for your house.What does the sentence “Movant requests, upon entry of an order granting relief from stay, that it be exempted from further compliance with Fed. Rule Bankr. P. 3002.1 in the instant bankruptcy case.” in the motion for relief mean?On December 1, 2011 several amended and new Federal Rules of Bankruptcy Procedure became effective. One is Rule 3002.1 which is listed further below. The language above that bankruptcy attorneys will see more often, is more a request for a comfort order. After relief is granted, the secured creditor is not obligated to comply with Rule 3002.1, the property is no longer property of the estate and there is no secured claim anymore.Rule 3002.1. Notice Relating to Claims Secured by Security Interest in the Debtor’sPrincipal Residence(a) IN GENERAL. This rule applies in a chapter 13 case to claims that are (1) secured by asecurity interest in the debtor’s principal residence, and (2) provided for under § 1322(b)(5)of the Code in the debtor’s plan.(b) NOTICE OF PAYMENT CHANGES. The holder of the claim shall file and serve on thedebtor, debtor’s counsel, and the trustee a notice of any change in the payment amount,including any change that results from an interest rate or escrow account adjustment, no laterthan 21 days before a payment in the new amount is due.(c) NOTICE OF FEES, EXPENSES, AND CHARGES. The holder of the claim shall file andserve on the debtor, debtor’s counsel, and the trustee a notice itemizing all fees, expenses, orcharges (1) that were incurred in connection with the claim after the bankruptcy case wasfiled, and (2) that the holder asserts are recoverable against the debtor or against the debtor’sprincipal residence. The notice shall be served within 180 days after the date on which thefees, expenses, or charges are incurred.(d) FORM AND CONTENT. A notice filed and served under subdivision (b) or (c) of thisrule shall be prepared as prescribed by the appropriate Official Form1,and filed as asupplement to the holder’s proof of claim. The notice is not subject to Rule 3001(f).(e) DETERMINATION OF FEES, EXPENSES, OR CHARGES. On motion of the debtor ortrustee filed within one year after service of a notice under subdivision (c) of this rule, thecourt shall, after notice and hearing, determine whether payment of any claimed fee, expense,or charge is required by the underlying agreement and applicable nonbankruptcy law to curea default or maintain payments in accordance with § 1322(b)(5) of the Code.(f) NOTICE OF FINAL CURE PAYMENT. Within 30 days after the debtor completes allpayments under the plan, the trustee shall file and serve on the holder of the claim, thedebtor, and debtor’s counsel a notice stating that the debtor has paid in full the amountrequired to cure any default on the claim. The notice shall also inform the holder of itsobligation to file and serve a response under subdivision (g). If the debtor contends that finalcure payment has been made and all plan payments have been completed, and the trusteedoes not timely file and serve the notice required by this subdivision, the debtor may file andserve the notice.(g) RESPONSE TO NOTICE OF FINAL CURE PAYMENT. Within 21 days after service ofthe notice under subdivision (f) of this rule, the holder shall file and serve on the debtor,debtor’s counsel, and the trustee a statement indicating (1) whether it agrees that the debtorhas paid in full the amount required to cure the default on the claim, and (2) whether thedebtor is otherwise current on all payments consistent with § 1322(b)(5) of the Code. Thestatement shall itemize the required cure or postpetition amounts, if any, that the holdercontends remain unpaid as of the date of the statement. The statement shall be filed as asupplement to the holder’s proof of claim and is not subject to Rule 3001(f).(h) DETERMINATION OF FINAL CURE AND PAYMENT. On motion of the debtor ortrustee filed within 21 days after service of the statement under subdivision (g) of this rule,the court shall, after notice and hearing, determine whether the debtor has cured the defaultand paid all required postpetition amounts.(i) FAILURE TO NOTIFY. If the holder of a claim fails to provide any information asrequired by subdivision (b), (c), or (g) of this rule, the court may, after notice and hearing,take either or both of the following actions:(1) preclude the holder from presenting the omitted information, in any form, as evidencein any contested matter or adversary proceeding in the case, unless the court determinesthat the failure was substantially justified or is harmless; or(2) award other appropriate relief, including reasonable expenses and attorney’s feescaused by the failure

The answer here, like many things, is that it depends.  Filing for bankruptcy can stop the immediate action of a foreclosure or repossession, but cannot always permanently stop the foreclosure or repossession.  If you are behind on mortgage payments or car payments, your lender may discuss foreclosure or repossession.  To stop a foreclosure you must file your bankruptcy prior to the foreclosure sale.  Once a property has been foreclosed upon there is nothing that we can do.  To stop a repossession, ideally you will file prior to the repossession.  However, in situations involving a car, you may be able to get your vehicle back within 14 days of the repossession assuming that it has not been sold by that time.  However, to do this, you will likely incur storage, towing, and other fees that will have to be paid prior to getting your vehicle back. So, we can stop the immediate action.  If you have mortgage arrears or past due car payments a Chapter 7 might not be your best option.  If this applies to you, you can spread out the past due payments over a longer period through a Chapter 13 filing.  This may mean that you have to pay back some of your creditors, but you will get to keep you house or car.  If you still want to file a Chapter 7 you would need to become current to keep the property.  A Chapter 7 will stop the immediate action, but cannot permanently stop a foreclosure or repossession if you are not current on payments. Perhaps the biggest issue is that you have to be able to afford ongoing payments.  In many cases, when filing for bankruptcy, to keep your home or vehicle, the lender will want you to do a reaffirmation agreement, stating that you will assume the loan under the original terms.  For the lender and the court to accept this you have to show that you can afford the ongoing payments.  In some cases, the debtor can now afford the payment because he/she will not be making other payments.  In other cases, the debtor may not be able to afford the ongoing payments and may end up in the same position again, only this time he/she may not be eligible to re-file for bankruptcy.If you have any questions, or would like to speak with an attorney, contact a St. Louis Bankruptcy Attorney today!

  I had spent at least six hours with the clients over several months, strategizing about extracting them personally from a cratering business situation, when he said, “Oh, I haven’t told you about…” Others at the meeting said my eyes popped and I’m sure my face fell. He owned another business corporation, which had assets, filed tax returns, and stood utterly apart from the holdings we’d been dealing with. Now, what possessed him to overlook this entity over such a protracted period of time I cannot say.  Stress perhaps.  Other issues threatened to bite, while this corporation was perhaps an opportunity without (yet) troubles. But it fed into a theme in my professional life last week: unexpected assets. Another client in a second or third meeting last week came round to owning up to title to the corporation’s domain names, some trade marked intellectual property,  and a potentially valuable customer list. So, the call today is to keep digging as you look for assets. Business wrinkles The usual suspects, if you will, are business people, particularly if they have incorporated a business once operated as a proprietorship.  Assets bought by the individual frequently don’t get transferred to the business entity.  Or, for tax purposes, they create a separate entity to lease some asset or provide some service to the business. When the business is a separate legal entity, it often owes the shareholders for loans, funds advanced, use of individual assets. Wait, wait, there’s more But it’s not just business folk who hold unexpected assets. At the Northern California Bankruptcy Forum, Folsom bankruptcy attorney Gary Gale presented a confidence-shattering list of things to ask about not in my current client patter. And another presenter, who works for trustees, talked about accessing Google Street View and Google Maps to see what was visible on the debtor’s property.  He reported finding tractors, multiple unlisted vehicles, livestock, and outbuildings containing who-knows-what. Get better digging implements If we assume that it’s inattention or distraction, not the desire to deceive, that leads clients to omit stuff, then we have to become good listeners and linguists. Listen for the clues to activities or locations not yet mentioned.  Scour the tax return for depreciation on things you haven’t heard about, the paystub for deductions you can’t identify. Widen your vocabulary.  My friend Charlotte bankruptcy attorney Susanne Robicsek memorably tells about asking a client if they had a couch in their living room.  No, the client replies.  A davenport?  No, again.  A sofa?  Oh, yes, we’ve got a sofa. So, don’t take “no” as the final word. Less than obvious assets Let’s start a list of assets that may elude us: Accrued vacation pay Paypal accounts Insurance claims Class action membership Health savings accounts Liquor licenses Timeshares or vacation club points Claims for as yet unreimbursed business expenses Domain names and  websites Trade marks or trade secrets Book royalties Renewal commissions Realtor commissions on pending transactions Loans made to closely held businesses Vested rights in trusts and estates Stock or options in companies not (yet) public Business leases in the individual’s name Season tickets Airline tickets or paid for vacations Security deposits for utilities or rentals Legal claims not yet filed Keep digging.  There are undoubtedly more.  Image courtesy of Mary MacTavish.

Filing bankruptcy gives protection of an automatic stay to the Debtor. This means the creditor is prohibited from taking any action against a debtor or a debtor’s property for example foreclosure on a home or repossession of car.A motion for relief is filed by a creditor for seeking relief from the automatic stay for various reasons. One of the reasons is to foreclose upon the real estate or property, if the debtor is behind on payments.  This can also be done to a car from the debtor. Sometimes the creditors file for relief to pursue the debtor’s insurance coverage. Such relief is granted if creditor agrees to limit the collection of his judgment to the insurance.   If relief is granted to the creditor it does not mean that the estate will be removed from debtor or the creditor gets the ownership of the property, it only removes the stay or allows the creditor to move ahead with the best remedies available to the creditor to collect the claim against the debtor. Creditors can seek for relief in both Chapter 7 and Chapter 13. Usually if a debtor filed a Chapter 7 he needs to be current with the mortgage payment or car installment. If a debtor is behind on mortgage payments, or to stop repossession of the car he could file chapter 13 and he can pay arrearages through the plan. For ongoing mortgage payments he has two options either pays the ongoing mortgage payments outside the plan or pays them through the plan. The creditor will file for the relief if the client is not current with post-petition payments.There are few ways to defend against the motion for relief.  It is always good to be current on the payments, but it also depends on your interest in the property. If you are in a chapter 13 you have the option of entering into a stipulation agreement. In a stipulation agreement you can make the post-petition arrearages over six months.  Including the payment in chapter 13 plan will keep you current with post-petition mortgage payments. If at the hearing the motion for relief was granted, the remedy for it is to file a motion to vacate the order if the debtor is current on their mortgage payments and could prove to court that they were current when the relief was granted. The only other option available after relief is granted is to file a consent motion to vacate the order on motion for relief if the mortgage company agrees to the motion.There are situations when you cannot be current but keeping track of the bills and paying them on time will help you and your family.  If you have any questions contact a St. Louis Bankruptcy Attorney today.

How many times in life have we wished that we could extend adeadline? Section 108 of the Bankruptcy Code, under certain circumstances,allows us to do just that.Section 108(a) extends any statute of limitation to commencean action that the debtor could have taken before the filing of the bankruptcypetition for two years after the date of the bankruptcy filing, unless it wouldexpire later under applicable non-bankruptcy law.  Section 108(b) is applicable when there is a time limit setfor taking certain actions, such as the filing of pleadings or claims, and thatperiod has not expired before the date a bankruptcy petition was filed.  Under § 108(b), a bankruptcy trustee is given60 days to take actions not covered under § 108(a), such as filing a pleading,a demand notice, or proof of claim or loss (such as an insurance claim).  Section 108(b) also extends the time tocommence an administrative proceeding or file a notice of appeal. Section 108(b) does not apply to time periods inactions against a debtor.  Such actionsare stayed by § 362 of the Bankruptcy Code and may proceed only when the stayunder the applicable sections of the Bankruptcy Code terminates.  Therefore, in a Chapter 11 bankruptcy case,deadlines that have not expired prior to the bankruptcy filing may be extendedfor an additional 60 day period.  In Canney v. Merchants Bank (In re Canney), 284 F.3d362 (2002), the Second Circuit (which includes New York) held that when thereis a foreclosure sale and the debtor has a certain amount of time by law toredeem the property, the debtor’s rights to the property are controlled by §108(b), and extend the redemption period for a maximum of 60 days. Section 108(c) provides that if a non-bankruptcy claimagainst the debtor is stayed due to bankruptcy, any deadline for commencing orcontinuing the action is extended to 30 days after notice of thetermination of the stay, if the deadline would have occurred on an earlier date(if a party does not receive notice of the termination of the stay, the 30 daysnever begins to run).  For more information about how bankruptcy affects deadlinesin legal actions, please contact Jim Shenwick.

The average student loan debt is $40,000, amortized over 30 years. Many debtors are forced to make monthly payments in excess of $1,000, which is comparable to a mortgage payment. Bankruptcy laws were enacted to provide assistance to people suffering from overwhelming financial debt, but little help is offered to those burdened with student loans.Student loans are extremely difficult to discharge through bankruptcy. Under Chapter 7 bankruptcy, essentially all debts are discharged, with the exception of student loans and other debts such as support obligations or recent taxes. A debtor seeking discharge of a student loan must prove that payment of the debt will impose an undue financial hardship.Most Bankruptcy courts apply the Brunner test to determine the discharge of student loans. The Brunner test, based on a 1987 U.S. Court of Appeals decision, sets forth three criteria to measure undue financial hardship:•             The debtor will be unable to maintain a minimal standard of living, based on current income and expenses, if forced to repay a student loan.•             Circumstances exist indicating that the debtor’s financial situation is likely to continue for a significant portion of the student loan repayment period.•             The debtor has made good faith efforts to repay or renegotiate the terms of the student loan.Since the Brunner decision was rendered, undue hardship has become the only factor considered in a bankruptcy discharge of student loans. Bankruptcy courts may interpret the criteria of the Brunner test differently. Some courts view a minimal standard of living as below the federal poverty level, which makes it increasingly difficult for a debtor to prove undue hardship. After a debtor has exhausted all attempts at increasing income and reducing expenses to a bare minimum, student loan lenders continue collection efforts.A bankruptcy discharge of student loans involves an adversary proceeding, which is separate from the bankruptcy case. During the proceeding, some courts use a “totality of circumstances” test for determining undue hardship. Under this test, the courts evaluate the following factors:•             the debtor’s current and future ability to pay the student loan;•             whether the debtor has made a good faith effort to negotiate a deferment or forbearance;•             whether the debtor’s financial hardship is likely to be a long-term situation;•             the debtor’s payment history on the loan prior to default;•             whether the debtor suffers from a serious illness or permanent disability;•             the debtor’s ability to obtain gainful employment in his or her field of study;•             whether the debtor has attempted to increase income and significantly reduce expenses;•             whether the debtor’s primary purpose in filing for bankruptcy is based solely on the discharge of student loans; and•             the ratio of student loan debt to total debts.If a debtor is able to convince the court that he or she suffers from undue hardship, student loans can be discharged in Chapter 7 bankruptcy. In the unfortunate event that a debtor’s student loans are not discharged, private lenders may be willing to negotiate a reasonable payment plan based on the debtor’s current income. Private lenders may waive penalty charges and late fees. It may be possible to negotiate a lower interest rate and extend the term of the loan, which would reduce the monthly payment.Federally-funded student loans are the most difficult to discharge in bankruptcy. Federal collection agencies have the power to seize tax refunds, garnish wages, bank accounts and federal benefits, such as Social Security. Bankruptcy courts will not discharge federal student loans unless special circumstances exist. Since there is not a statute of limitations on federal loans, collection efforts can continue throughout the life of the debtor.A debtor with a regular monthly income may be better served by filing a Chapter 13 bankruptcy. Under this type of bankruptcy, student loans are treated the same as all debts. The debtor makes one monthly payment to the court, which is distributed proportionally among all creditors. Under Chapter 13, the debtor can either continue paying his monthly payment towards the student loan or treat the student loans similar to all other unsecured debts, such as credit card debt. If the chapter 13 plan does not pay anything to unsecured creditors, nothing will be paid to student loans. Following completion of the payment plan, student loans are still owed and collection efforts may resume. After completion of a Chapter 13 plan, it may be possible to renegotiate the terms of the remaining balance. In the alternative, a debtor can attempt to discharge the remaining balance based on undue hardship. Under the Brunner test, completion of a Chapter 13 reorganization plan satisfies the good faith effort to repay the student loan.

Someone co-signed a car for me. What are my options? You were in a bind, needed a co-signer and someone (a family member or friend) was willing to co-sign on a vehicle for you. Now you are in financial trouble and will be filing bankruptcy. The last thing you want is to negative effect that person’s credit after they did a favor for you. The effect on their credit depends greatly on what your intentions are with the vehicle? Are you keeping it and paying it back as you agreed? Are you keeping it and paying it over a longer period of time through a Chapter 13? Are you surrendering the vehicle? In a Chapter 7, in order to not allow the vehicle loan to negative impact the co-signers credit, either you or the co-signer need to pay the loan as it was originally agreed on the loan agreement. If you surrender the vehicle through the bankruptcy, this makes you no longer legally liable for the debt. However, the co-debtor IS still liable for the debt meaning that the creditor can still go after the co-signer to collect the debt unless the co-debtor also files bankruptcy. Also keep in mind that if the debt is not paid, they can repossess the car. In a Chapter 13, the effect on the co-debtor is dependent on whether the credit is receiving payments through the Chapter 13 plan. If they are, then the co-debtor will not be negatively affected due to co-debtor stay so long as you are making the Chapter 13 plan payments and the creditor is receiving payment. If however, you are either not listing the creditor for the vehicle as being paid through the plan OR you are not making your Chapter 13 plan payments, the creditor can file a motion for relief from automatic stay as well as relief from co-debtor stay. If this is granted, they can then try to collect from the co-debtor.Regardless of which route you decide to take, the co-debtors credit report can show that co-debtor (you) filed bankruptcy. In short, liability of co-debtors can be complicated. If you have questions in regards to this, you will want to consult an attorney.

What happens if I get behind on mortgage payments while I am in a Chapter 13?You made the decision to file a bankruptcy and decided to keep you home. You file a Chapter 13 and are making your mortgage payments and your Chapter 13 plan payments as scheduled. Something comes up and you get several months behind on the post-petition mortgage payments. Now what? Several things will happen…First is that the attorney for the mortgage company will likely contact your attorney let you know that payments are delinquent. If this happens, the attorney should contact you advising you that payments needs to be brought current. However, this step of a “warning” from the mortgage company is not required and does not always happen. The next step (often times the first step), is that the mortgage company’s attorney will file a Motion for Relief with the court in your bankruptcy case. Essentially this is the mortgage company bringing notice to the court that you are delinquent on post-petition payments on your mortgage. They are also asking the court to grant the mortgage company relief from the automatic stay. In short, the mortgage company wants permission to be able to continue with a foreclosure process even though you are in a bankruptcy due to being delinquent. The motion for relief will set out a hearing date. 7 days prior to that hearing date a response must be filed by you or your attorney (if you are represented) stating your intentions, whether you intend to become current on the mortgage, etc. If not response is filed, the motion for relief will automatically be granted to the mortgage company 7 days before the hearing. Options1. Become Current: Respond to the motion and become current on post-petition mortgage payments before the hearing2. Stipulation Agreement: Depending on how far behind you are on your mortgage, you can ask the mortgage company to allow you to enter into a stipulation agreement. This stipulation agreement usually requires some sort of down payment and spread the delinquent post-petition mortgage payments out over 6 months. This may sound like a great option, however, be aware that you now have 1) ongoing mortgage payments, 2) chapter 13 plan payments, and 3) a stipulation payment. 3. Surrender the home: If at this point you realize you cannot maintain payments on the mortgage, you can allow the Motion for Relief to be granted and surrender the home through the bankruptcy.  The decision to file bankruptcy and the decisions related to any motion for relief in a bankruptcy are important and should not be made based on this article. You should seek legal advice before making a decision.