At the intersection of foreclosure, Chapter 13 filings and divorce

Realty Check

By Erica Minchella

Erica Crohn Minchella, is the head of the boutique real estate firm of Minchella & Associates, Ltd., handling residential and commercial real estate transactions and litigation such as foreclosure defense, quiet title, and partition actions. erica@ecminchellalaw.com

Posted February 4, 2021 11:26 AM

We all know that divorce cases have increased, that residential foreclosures are stayed and that bankruptcy filings have also increased and will continue to do so. What happens if parties to a divorce are in foreclosure and one party files a Chapter 13 to address the debt? The Chapter 13 stops the foreclosure proceeding as long as the debtor makes payments required under the bankruptcy plan. That means that the debtor must make payments to cure the arrears as well as the usual monthly mortgage payments. The debtor may work …

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