QUESTION
Can a creditor take the money I sent for bankruptcy to keep a mortgage current?
Asked on Jul 06th, 2013 on Bankruptcy - Colorado
More details to this question:
We filed bankruptcy in 2007 and it was discharged in 2012. I just found out the creditor took the payment that I send to keep mortgage current and applied it to the amount that was in bankruptcy for 6 months and charged other fees like late fees ,plan notice of appearance and others fees.
4 ANSWERS
I can't make sense of your question. If you intend to keep your house after filing bankruptcy, the money you owed at the time you filed for past due payments didn't just disappear. In order to keep the property, you have to make all the payments. Ask for an accounting from the lender but it sounds like you made some faulty assumptions about bankruptcy.
Answered on Jul 09th, 2013 at 8:52 PM
Bankruptcy Attorney serving Florissant, MO
at
Law Offices of Thomas Corcoran Phipps
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That doesn't sound right. You should discuss this with the attorney who is representing you in the bankruptcy.
Answered on Jul 09th, 2013 at 8:52 PM
Deborah F. Bowinski
Your question is very confusing. It sounds as though you were in a chapter 13 bankruptcy. You do not say which creditor "took" your money, nor where it was taken from. If this is a mortgage creditor you are asking about, then it sounds as though there were fees that accrued during your chapter 13 plan (such as new late fees or returned check fees) that were assessed but not paid. If that is the case then the lender may be within their rights to apply funds to those costs after your discharge. You really should contact your chapter 13 attorney to ask for assistance in determining whether the lender has violated the discharge order or not.
Answered on Jul 09th, 2013 at 8:51 PM
Regulatory Attorney serving Spokane, WA
Partner at
Deissner Law Office, P.C.
Hard to answer. You must have been in a Chapter 13. The secured creditor is entitled to be paid whatever the contract (mortgage agreement) provided, which could include legal fees and penalties and such, unless the Bankruptcy Court ruled otherwise, OR unless they agreed to modify the loan in some way under the Ch. 13 Plan. Hard to tell from your explanation: maybe yes, maybe no. Probably should have a BR lawyer look at it, but if it isn't a lot of money, likely not economical to do so.
Answered on Jul 09th, 2013 at 8:51 PM