Legal Question in Bankruptcy in Wisconsin

Foreclosure Due to Failure to Make Mortgage Payments after Filing Bankruptcy

If you already have a lawyer, you need to direct your question to that lawyer. If you are not satisfied with your representation, you always have the option to seek a second opinion from a new lawyer. Knowing nothing about your case, I cannot speculate on the cause of your apparent eviction. However, this usually occurs due to a failure to make your mortgage payments after your bankruptcy filing. This is a surprisingly common problem, since debtors often cannot afford their house payments and, as a result of �wishful thinking,� come to believe that they should await further instructions after filing before they resumes their payments, thereby justifying in their own minds that they do not have to pay. Instead, they should definitely not wait but instead resume the payments as soon as possible in exactly the same manner as the payments were made prior to filing�ideally even before filing. Lenders are actually prohibited from sending you further correspondence without the court�s permission once you have filed, so if you await further instructions, you will be waiting for a long time and will end your waiting out on the street. Most mortgage obligations are unchanged by bankruptcy filings and lenders retain right to go after their collateral even after the bankruptcy is filed. Lenders also have the same right during the bankruptcy, although they need to first seek permission from the judge via a "motion to lift automatic stay." Violations other than nonpayment can also lead to continuation of a foreclosure despite a bankruptcy filing. Such �other violations� can include letting property casualty insurance lapse on the home or failing to pay property taxes when due. Only a chapter 13 filing can force a lender to resume accepting payments and reinstate a loan, provided that the plan is confirmed and the debtor fulfills all obligations. Chapter 7 filings can sometimes yield a similar result, but only if a negotiated settlement is reached with the lender, which must include an agreement to dismiss the foreclosure action. Good luck!