Mortgage Co Refunded Money

[catdance23]

Well, something I wasn't expecting just happened. Over the past couple of months before we decided to file for ch7 we had been making partial payments on our mortgage. Since it wasn't the whole amount they were not applying it to our account. We filed on 7/17. This past Saturday (7/26) we got a refund check from them for several thousand dollars.

I've already emailed my lawyer to ask what we should do with this. Should we hold onto it until after our 341? Will the trustee just take it to pay off debt? Has anyone had any experience with this? It would be great if we could keep it but somehow I doubt that we will be able to.

[catdance23]

I guess no one has had this happen to them???

[liz417]

Are you keeping the house?
I would hold on to it because the trustee may want it to pay some of your debt.

Good Luck!

[Help!]

I've never heard of this happening, but yes... that check will likely become property of the BK estate unless you can amend your petition to exempt it. I'd make absolutely certain the trustee knows about the check so there will be no possibility of it being interpreted as a hidden asset. Sorry - wish I could tell you to stash it somewhere and open a big savings account the day after your 341 - but you'd be jeopardizing your case.

[catdance23]

That's what I figured. Boy, it would be nice to use that though. Oh well.