If after speaking with your Aurora bankruptcy attorney, you feel that Chapter 13 bankruptcy is the best choice for you, you will gather all the necessary documentation, have the bankruptcy petition prepared and file everything with the court. As soon as you file it, an automatic stay is entered, which prohibits any lenders or creditors from attempting to collection on the debt. This sometimes creates a problem for my clients, as mortgage and car lender will stop sending monthly statements and stop allowing them to make their payments online. Of course, one of the benefits of bankruptcy is that with continued payments, you can protect your home and car from begin taken. This is made more difficult when you are not receiving your statements or allowed to make payments online.
Why Did My Lender Stop Sending Monthly Statements? A Centennial Bankruptcy Lawyer Explains
The automatic stay is the key to why a mortgage company or lender stops sending any statements. This automatic injunction orders that creditors stop contacting the debtor regarding the debts. No new legal measures can be taken, nor can any repossessions be followed through with once the automatic stay is in place. Lenders for both homes or vehicles worry that sending a monthly statement could be seen as an attempt to collect on a debt and could make them liable for penalties and damages, which they absolutely do not want to pay.
I Want a Monthly Statement! Can This Be Fixed?
Even if you call and request a monthly statement, it likely won’t happen. Attorneys for the lenders will advise that the risk outweighs the desires of their clients. It may seem unfair, but it is somewhat understandable, as no one wants to go against an official order from a judge, and that’s basically what an automatic stay is. There is something that could possibly help, though. If you specifically write into your Chapter 13 bankruptcy plan that your mortgage lender sends a monthly statement and the judge signs off on your plan, then that becomes a binding agreement. It would allow the lender to still follow the court order and offer them protection.
If you are considering filing for bankruptcy and think that Chapter 13 might be the right choice for you, contact the best bankruptcy attorney Barry Arrington at 303-205-7870 to schedule a free consultation and begin your journey toward financial freedom.