Defining the Term “Mortgage Arrearage”


Have you wondered what is meant by the term “mortgage arrearage?” As Bankruptcy Law Network member Jonathan Ginsberg explains, a mortgage arrearage simply refers to any missed mortgage payments.

If, for example, you did not pay your mortgage in January and February, those two months would be in arrearage.

As bankruptcy lawyers, we frequently represent clients who have mortgage arrearages. Chapter 13 bankruptcy allows us to cure your arrearage by including your missed payments plus any fees and lender attorney’s fees into your Chapter 13 plan. Since Chapter 13 plans can last up to 5 years, we may have up to 5 years to cure your arrearage.

If you fall behind in mortgage payments that come due after we file Chapter 13, we would have to deal with your post-petition arrearage.  In Atlanta, where I practice, Chapter 13 debtors pay their post petition mortgage payments directly to the lender.  If one of my clients falls behind in his post-petition mortgage payments, the judge will give us several months to cure that post petition arrearage.

Bankruptcy lawyers often use terms that may be confusing and that are rarely used outside a legal context. The Bankruptcy Law Network exists to help you better understand the debt relief process and to make better decisions about your financial future.