New Personal bankruptcy Password and you can Rules control the use of mortgage payments when you look at the a pending Chapter thirteen personal bankruptcy. New inappropriate applying of mortgage repayments through the a chapter 13 can also be end in a creditor receiving decreased cost, plus in some situations, the brand new penalty off sanctions.

As soon as men data files a section 13 bankruptcy petition (“Petition Go out”), that loan backed by a home loan must be addressed since if it’s most recent

The pre-bankruptcy proceeding arrearages are reduced separately beneath the Chapter 13 plan as the a portion of the creditor’s greet allege. (more…)