When Mortgage Companies Refuse Payments While Your In Bankruptcy
Some debtors claim their mortgage lender refused payment after they file
bankruptcy protection. While this may sound unusual, the lender may decide
not to accept payment from you in order not to violate the
that goes into effect when your petition is filed. When bankruptcy is
filed the automatic stay goes into effect. This is legal protection the
debtor receives that prevents creditors from continuing collection attempts.
This also stops any legal action from lawsuits, wage garnishments,
repossession. Usually, if a creditor continues to collect from a debtor in bankruptcy
they can be punished if found in violation of the stay. So if you submit
your mortgage payment while in bankruptcy to your lender and they refuse
it, this may be the reason. There are a few simple steps you can take
if this happens.
What to Do if Mortgage Lender Refuses Payment
Contact your mortgage company by phone when you make your payment. Sometimes
a phone call alone is enough to clear the situation. If you do submit
your payment, keep a record with receipts, bank statements or certified
mail receipts (if you mail payments). You should have some sort of record
or paper trail to show you are making attempts to pay your mortgage. In
other words, this becomes your proof if the lender claims no payments
have been made. Contact your attorney; they may contact the lender on
your behalf to make payments acceptable. Save the money when the lender
refuses payment until the matter is resolved.
Have Any Questions About Mortgages and Bankruptcy? Let us Know
If you happen to have any more questions regarding mortgages and bankruptcy
you can always submit your questions to us. If you would also like to
set up a free consultation with one of our bankruptcy attorneys you can
contact us here.