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Problem with Exiting Chapter 13

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    Problem with Exiting Chapter 13

    Hi -

    I'm having an issue with my long-term debt holder, and wondering if there is any way that I can hold them accountable.

    I filed for Chapter 13 in December 2016, and completed my payments as of May 2020. On 05/15/20, the Notice of Final Cure was issued, and my long-term debt holder had 21 days to respond. The deadline of 06/05/20 passed with no response.

    In February 2020, the mortgage company failed to to notify the court of an increase in my monthly mortgage payment. I paid my mortgage that month, not being aware of the increased payment, and then found out the following month that they never applied my payment because it was short $6.70, which caused me to be delinquent. This also thwarted me effort to drop my PMI, as I no longer had 12 months of on-time payments on my record.

    It seems as if the mortgage company is in violation of more than one bankruptcy rule here. I have had an attorney to help with the Chapter 13 process, but I'm not sure that they are willing or able to help me with this issue. I have reached out to the Trustee's office, and they have referred me back to my attorney.

    I'm frustrated, and I'm not sure what I can do. The mortgage company seems to be incompetent, and they're keeping me from receiving my discharge from bankruptcy.

    Should I contact a different lawyer? Not sure if anything would help at this point. Any advice greatly appreciated.

    Yes, this would need to be done through your attorney. Your attorney can issue a Motion to Show Cause in the bankruptcy and have them appear before the judge. Or they can fix their accounting issues. Unfortunately, your attorney will need to deal with this because you are represented.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.


      Just being realistic.... there is a limit of how much can be done within the no look fee. I believe this issue would cross that line with a MSC vs. letters and phone calls. Holding them accountable will likely involve a retainer with no option for a contingency fee.



        As of 07/14/2020, my attorney advised that the mortgage lender's failure to respond to the Notice of Final Cure is not the reason why the Trustee has not been able to issue my discharge letter.

        It turns out that the actual reason that I haven' t gotten my discharge letter is because one of my creditors has not deposited a check that was sent to them.


          Also wanted to mention that the Motion to Show Cause was great advice.

          At this point, my attorney sent a letter to the mortgage company regarding their administrative failures. They have 10 days to respond, after which we'll probably go with filing the motion.


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