A Chapter 13 bankruptcy was created to let you create a court-supervised repayment program, according to Cornell University Law School. At the beginning of a Chapter 13 bankruptcy, the court issues an automatic keep order that freezes all group action, including foreclosure actions and court cases filed in California or another state. You might wonder everything you are doing to change the conditions of your mortgage when the stay is revoked as to your own mortgage mortgage company. A procedure is in place inside the U.S. Bankruptcy Code that allows you to change the conditions of your mortgage in a Chapter 13 case.
Contact the mortgage mortgage company and guide her that you want to enter a reaffirmation agreement. A reaffirmation agreement is a deal for sale in a bankruptcy situation, as stated by the U.S. Bankruptcy Code. The arrangement allows one to fix conditions and the terms of a home mortgage to put you in a much better position to satisfy this obligation as time goes on.
Notify the bankruptcy trustee of your intention to reaffirm the home mortgage. The bankruptcy trustee is the courtroom official designated to supervise your Chapter 13 bankruptcy situation on a day to day basis, in accordance with “The Glannon Guide to Bankruptcy” by Nathalie Martin.
Get a agreement type. Bankruptcy trustee or the mortgage mortgage company can supply this file. The conventional practice is for the mortgage mortgage company to organize the reaffirmation understanding.
Review the reaffirmation agreement carefully. Make certain the deal contains agreed-to mortgage modifications.
Sign the agreement. The agreement is executed by a consultant of the mortgage mortgage company at the same time.