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Providing time to raise more funds to reinstate

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Reference no: EM132071349

What is the legal rationale of the following case? In Vienna, Virginia, JP Morgan Bank commenced foreclosure of a townhome by filing a complaint on April 14, 2006. In the meantime, the owner of the townhome filed a chapter 13 bankruptcy case on May 2, 2006. The bank was not aware of the bankruptcy filing until it received an e-mail from its servicer on April 11, 2005. Then, the lender will not be able to demand payments from you during the time that the bankruptcy claim is being heard. This can have several advantages for the borrower, such as: - Providing additional time to arrange for alternative or back-up housing. - Providing time to raise more funds to reinstate the mortgage. - If you have filed under Chapter 13, you have a window of time for you to re-organize your finances in anticipation of the upcoming payment plan.

Reference no: EM132071349

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