In the event the Debtor’s Chapter 13 Plan provides for the Debtor to pay direct the monthly post-petition mortgage payments, the Debtor must make these direct monthly post-petition mortgage payments the same as the Debtor must make plan payments to the Trustee’s office. The Debtor’s failure to make the direct monthly post-petition mortgage payments may result in the Court entering a Court Order lifting the automatic stay to allow the mortgage company to foreclose on the Debtor’s home and/or Court Order dismissing this bankruptcy.
For Section 3.1 of Chapter 13 Plans filed by a Debtor on or after December 1, 2017, the Trustee “will monitor” the Debtor’s fulfillment of the payment of these post-petition monthly mortgage payments. Accordingly, the Trustee has set up certain procedures that the Debtor must follow to verify to the Trustee each monthly post-petition mortgage payment has been made. The Trustee will report this information to the Court on a monthly basis. These procedures can be generally described as follows:
Mortgage Payments due from Petition Date through Date of Confirmation: The Debtor will file with the Court the Debtor’s Direct Payment Certification (TXEB Form 3015-c) confirming all post-petition direct payment obligations (including mortgage payments) have been made through date of confirmation.
Mortgage Payments due from Date of Confirmation through End of Case: The Debtor will provide the Trustee with written verification each month that the Debtor’s mortgage payments beginning with the month the Plan is confirmed through the end of the case. A telephone call to the Trustee’s office will not be sufficient.
For that purpose, the Trustee will provide the Debtor with a self-addressed Post Card to complete and mail back to the Trustee each month during this time period. In the alternative, the Debtor may use the form below to report to the Trustee that the mortgage payment was made for the month in question in the event the Debtor has no post card.
The Debtor’s failure to provide the Trustee this monthly verification that the mortgage payment was made will result in the Court setting a Show Cause Hearing which may result in the Court entering a Court Order lifting the automatic stay to allow the mortgage company to fore close on the home and/or a Court Order dismissing the bankruptcy.
Click on the following documents for further information.
Post-Petition Mortgage Payments