Question Re: Reaffirmation

[ConnieS]

We finally filed last week for a no asset Chapter 7. We have a tenative date for our 341 set for September 22. We are planning to reaffirm the mortgage and home equity loan along with my car. My question is, the mortgage and home equity are done by direct debt from a seperate account for each (mortgage from saving, HE from checking) What will happen now, will they suspend these payments until we sign the reaffirmation, or will they continue to debit the payments. I emailed my lawyer and she is out of town and the paralegal wasn't sure. I just want all my ducks in a row so to speak so I know exactly what is going to happen.

Thanks in advance

[lrprn]

We finally filed last week for a no asset Chapter 7. We have a tenative date for our 341 set for September 22. We are planning to reaffirm the mortgage and home equity loan along with my car. My question is, the mortgage and home equity are done by direct debt from a seperate account for each (mortgage from saving, HE from checking) What will happen now, will they suspend these payments until we sign the reaffirmation, or will they continue to debit the payments. I emailed my lawyer and she is out of town and the paralegal wasn't sure. I just want all my ducks in a row so to speak so I know exactly what is going to happen.

Thanks in advance

We chose not to reaffirm our mortgages or cars and are paying both our mortgage and HEL ourselves every month (in other words, our trustee does not pay our mortgages through our plan payments), so I can't be of much help here...sorry.

Are either your mortgage or HE loan from the same bank you have your current savings and checking account at? That could impact how and when they will continue to pull auto-payments already set up before and after filing and reaffirmation. If I were you, just to be safe, I would seriously consider stopping all the current auto-payments from both accounts and make the payments manually yourselves until the bk dust settles and the reaffirmations have a chance to wind their way through the lenders' systems. Then you won't have to worry about who is making the payments and when - you will be. Just a thought - someone who did reaffirm may have different advice for you. Whatever happens, good luck and hope things go well for your filing!

[dscurlock]

confused..

We chose not to reaffirm our mortgages or cars and are paying both our mortgage and HEL ourselves every month (in other words, our trustee does not pay our mortgages through our plan payments), so I can't be of much help here...sorry.

Are either your mortgage or HE loan from the same bank you have your current savings and checking account at? That could impact how and when they will continue to pull auto-payments already set up before and after filing and reaffirmation. If I were you, just to be safe, I would seriously consider stopping all the current auto-payments from both accounts and make the payments manually yourselves until the bk dust settles and the reaffirmations have a chance to wind their way through the lenders' systems. Then you won't have to worry about who is making the payments and when - you will be. Just a thought - someone who did reaffirm may have different advice for you. Whatever happens, good luck and hope things go well for your filing!

im confused, the first part said you chose not to reaffirm, then your second part said you did reaffirm?? may i ask what the trustee is ojecting too?

Thanks

[SinkingFast]

im confused, the first part said you chose not to reaffirm, then your second part said you did reaffirm?? may i ask what the trustee is ojecting too?

Thanks

Lrprn didn't reaffirm. She was telling the OP to manually make the payments until the BK dust settles and then resume auto withdrawals.

I didn't see any comment about a Trustee objection. Lrprn is in Ch 13 and does not have his/her mortgage payments paid by the Trustee thru the Ch 13 plan payments.

One thing you gotta remember is the Lenders cannot contact you regarding your loans during the BK process. For the 90-120 or so days it takes for Ch 7 to go thru the timeline, you'll be under Automatic Stay protection. May be that your Lender cannot continue auto withdrawals during that time frame anyway.

Also, while the BK is open and active, the regular payments processing dept won't be handling your loan(s). Everything will be turned over to the BK Dept. Specially trained people who know what they can and cannot say and do with and for you while you're in the BK.

If the Lender files a motion to lift stay to work around the BK, the Lender will most likely add those legal fees on to your principal balance. The suggestion to change over to manual payments for the duration of the BK process is a good one. CYA yourself on all sides, so to speak.