Law Office of Phil Hineman

Mortgage Modification Mediation in Chapter 13 Bankruptcy

The Arizona Bankruptcy Court recently signed General Order 16-2, which approves and implements an options Mortgage Modification Mediation program (“MMM”).  This allows Debtors and mortgage companies to enter into mediation to enable mortgage modifications along with confirmation of Chapter 13 Bankruptcy Plans.

How does MMM work?

In order to start, a Debtor must have an individual (or joint) Chapter 13 case pending, be able to pay the applicable fees ($380), and be able to make Estimated Monthly Payments (the lesser of 31% of your gross income or your regular monthly mortgage payment).

Getting Started

To start the procedure, a Debtor can prepare a packing using the vendor’s preparation software, pick a mediator, and file a motion with the court asking for a referral.  Note: this motion must be filed within 90 days of the petition date.  To make things go more smoothly, a Debtor can ask for the Lender’s consent for referral.  Otherwise, the Debtor must meet additional guidelines.

Once the above steps are taken, the mediation process can begin.  There are several steps along the way, with deadlines and requirements.  Visit for more information.