Clients With A Mortgage in Arrears

Common Scenarios

Scenario 1 “Delay/Prevent Foreclosure” selected At least one month’s arrears listed Additional dischargeable debts listed Has a negative cash flow	Automatic bankruptcy recommendation
Scenario 2 “Delay/Prevent Foreclosure” selected At least one month’s arrears listed Does or does not have additional debts listed Has enough positive cash flow to repay the dischargeable debt in 60 months Has enough money in assets to pay off arrears	Automatic bankruptcy recommendation
Scenario 3 “Delay/Prevent Foreclosure” selected At least one month’s arrears listed No other dischargeable debts listed Has a negative or positive cash flow	Automatic bankruptcy recommendation
Scenario 4 “Delay/Prevent Foreclosure” NOT selected At least one month’s arrears listed Additional dischargeable debts listed Has a positive cash flow	NOT automatic bankruptcy recommendation

While the recommendation may be automatic based on the above scenarios, it’s still your responsibility to properly analyze the budget.

If you encounter a scenario that does not fall into one of the above scenarios, please check with OM.

- If after regular business hours, make your best recommendation and alert OM via email for review.