What If My Mortgage Company Refuses Payment?

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Your mortgage company has most likely refused your payment because the mortgage company has received notice of the automatic stay that goes into effect as soon as your bankruptcy is filed. They are probably concerned that they will be in violation of this “stay” if they agree to accept a mortgage payment. A lot of the time this can be cleared up with a simple phone call. If they send the payment back, try sending it again certified mail and keep copies of your receipts. This will help prove that you have been trying to make the payments if needed.

You can always contact you bankruptcy attorney’s office. Usually they will contact the mortgage company for you and make it so that they will begin to accept your payments again.  Most importantly, if the mortgage company does not accept your payment, do not go and spend that money! You will eventually pay that mortgage payment and the fact that they did not accept it when you tried to make the payment is not a sufficient excuse to no longer have the payment. Put the money that would be going to the mortgage company in your bank account and leave it there until you have cleared up the misunderstanding with the mortgage company.

Will I Have to Go to Court for Bankruptcy?

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Typically speaking, no you will not have to go to bankruptcy court.  However, you will have to attend what is called a creditors’ or 341 meeting.  This is not the same thing as bankruptcy court. One of the key differences is that in bankruptcy court you will actually appear in front of a bankruptcy judge.  In a creditors’ meeting you will only appear in front of the Trustee.  The Trustee is the person who represents your creditors, the people you owe money to.

With that said, at times there will be situations where it is necessary to go to court.  I would estimate that 98/100 times you will not have to go to bankruptcy court.  If you do have to attend bankruptcy court, don’t stress out about it.  Your attorney should make sure you are well prepared and it usually only lasts for a few minutes.  If there are other questions that we can answer for you don’t hesitate to contact our bankruptcy law firm.

What Happens After the Creditor's Meeting?

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At your Creditor’s Meeting, the Trustee sometimes asks for additional documents. You will have a specific time frame (usually no later than 15 days) to get these documents in to him or her. These need to be sent certified mail, and also mail a copy of what you are sending to the Trustee to our office. If you have not taken your financial management course already, this needs to be done ASAP! You will need to have that notarized and pay your fee ($8 per person). This needs to be turned in to our office, so that we may file that with the court.

*YOUR CASE CANNOT BE DISCHARGED WITHOUT HAVING THE FINANCIAL MANAGEMENT COURSE FILED WITH THE COURT*

Once you have tied your loose ends with the Trustee and have taken the financial management course online, it is more of a waiting game. Normally a Chapter 7 bankruptcy lasts 4-6 months. Your creditors’ meeting is roughly 30 days after you file, so you can guesstimate yourself another 2-5 months of wait time. A Chapter 13 bankruptcy usually lasts 60 months (5 years), with the creditor’s meeting happening roughly 45 days after you file. In Chapter 13’s, continuation of timely payments is essential to staying in the Chapter 13 bankruptcy and receiving a discharge.