What happens to my mortgage payments if I file bankruptcy?

If you file for bankruptcy, the handling of your mortgage payments depends on the type of bankruptcy you file and the decisions made by the bankruptcy court. In a Chapter 7 bankruptcy, the automatic stay temporarily suspends foreclosure proceedings and collections, allowing you to potentially keep making mortgage payments as usual. However, you may also have the option to surrender the property or include it in a reaffirmation agreement with the lender. On the other hand, if you file a Chapter 13 bankruptcy, your mortgage payments can be included in the repayment plan, and you would make those payments to the bankruptcy trustee who, in turn, would distribute the funds to creditors. It's essential to consult an attorney and work closely with your bankruptcy court to understand the specific implications and options regarding your mortgage payments during bankruptcy.