Cure Your Mortgage Arrears in a Chapter 13 Bankruptcy in Order to Keep Real Property

A client consulted with us in an effort to save her homestead property and investment property. Her children lived in her investment property, so she didn’t want to lose it. However, the client hadn’t paid her mortgage payments or real estate taxes in years on either property.

We filed a Chapter 13 bankruptcy for this client. We were able to cure and maintain her monthly obligations and save both properties. The client was able to maintain the regular monthly payment of $342.78 a month on her homestead, and cure the $22,881.12 in arrearages over 5 years. She was also able to save her investment property by making the regular monthly mortgage payment, the regular monthly homeowner’s association payment of $235.00, and curing the $17,884.38 in arrearages over 5 years. This client did not have any unsecured debt.

We call this type of case a cure and maintain plan. It is a strategic Chapter 13 that allows a debtor to force a monthly payment on a bank without its consent, and allows a debtor to become current at the end of the 5 year plan.

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