Does a mortgage company need to file a proof of claim to recieve payments for arrears?
1 Answer from Attorneys
The answer to your question is more complicated than the question you asked.
The mortgage is a lien on real estate. It survives the bankruptcy, no matter what. The discharge of the DEBT doesn't affect it. The mortgage folks have a lien on the property, period.
You will either make peace with them (reaffirm the debt, or make it a part of your Chapter 13 plan) or they will foreclose. They will file a Motion to Lift Stay (which will be granted) and will take their property back. They don't even care that much about the debt being discharged. Bankruptcy affects DEBTS, not purchase-money liens.
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