Posted on: 03rd Jun, 2010 08:03 pm
If I am in bk chapter 13 and my balloon note comes due, what happens?
hi burrton,
i hope the mortgage is included in your chapter 13 bankruptcy filing. in that case, though your balloon note becomes due, the lender won't be able to come after you. rather, he will have to give you a payment plan which will help you to pay off the dues within 3-5 years.
to know about chapter 13, check out the given page:
http://www.mortgagefit.com/bankruptcy/chapter13.html
take care.
i hope the mortgage is included in your chapter 13 bankruptcy filing. in that case, though your balloon note becomes due, the lender won't be able to come after you. rather, he will have to give you a payment plan which will help you to pay off the dues within 3-5 years.
to know about chapter 13, check out the given page:
http://www.mortgagefit.com/bankruptcy/chapter13.html
take care.
The lender will want to know what eventually happened to that mortgage, and may think it was included in the BK/foreclosed by the lender.As stated there is no credit history reported on the credit reports after BK.