QUESTION
Is it legal to continue billing me for mortgage if I included it in chapter 7?
Asked on Sep 22nd, 2013 on Bankruptcy - California
More details to this question:
I filed a chapter 7 over 3 years ago which included my mortgage. The lender has continued to bill me and I have paid every month since I have not moved out. Is the continued billing legal?
8 ANSWERS
Yes, they can send bills if it is your home. Your paying is voluntary.
Answered on Sep 26th, 2013 at 9:13 AM
Bankruptcy Attorney serving Seattle, WA
at
The Law Office of Marc S. Stern
Update Your Profile
Even though the personal liability is discharged, the lien on the property remains. If you do not make the payments, the lien can be foreclosed. Whether the lender bills you are not is a different question. Look carefully at the bill. They may have some language that says that they are providing information.
Answered on Sep 26th, 2013 at 4:54 AM
Deborah F. Bowinski
Are you receiving actual billing statements, or are you receiving informational statements? Do you wish to remain in the home? The debt will have been discharged in your bankruptcy, but in order to keep the property you must continue to pay the mortgage. If you do not pay, the lender will have the right to foreclose on their lien.
Answered on Sep 25th, 2013 at 2:48 AM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
In NJ, it is not a violation of the automatic stay, or any injunction to send normal billing statements for current monthly charges pursuant to general order of the court.
Answered on Sep 25th, 2013 at 2:47 AM
It depends on whether the billing is merely informational or is a demand for payment. Most people wishing to keep their property want to have the information, and so lenders will often say on the paperwork that "this is not a demand for payment."
Answered on Sep 25th, 2013 at 2:45 AM
Car Accidents Attorney serving Mandeville, LA
at
Olivier Law Firm, LLC
Update Your Profile
Once you are discharged, you do not owe the mortgage. The mortgage remains on the property however. Anyone can ask you for money, but you are not legally bound to pay them. Same case here, though I would have an attorney send them a cease and desist letter.
Answered on Sep 25th, 2013 at 2:30 AM
Your real property is secured by a deed of trust. Unless you surrendered that property in a bankruptcy, the mortgage company can continue to expect to get paid and can send you billing notices. You state that you included the house in your bankruptcy and it is not clear what you meant by that. As long as there is a recorded deed of trust that secures the loan you took out, you are responsible for the debt, unless you indicated, in your bankruptcy, that you are surrendering the property.
Answered on Sep 24th, 2013 at 6:54 PM
Personal Injury Attorney serving Glendale, CA
at
JT Legal Group
Update Your Profile
No. But something does not sound correct. I bet you the lender does not know you filed for bk!
Answered on Sep 24th, 2013 at 6:24 PM