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liljess46 · Jun 4, 2006, 02:48 PM

I just made my last payment on my chapter 13 bankruptcy. I am waiting my discharge papers. I was told that I will still have to pay an attorney or interest to my mortgage company. Is this true?

Fr_Chuck · Jun 4, 2006, 04:41 PM

I will assume your chapter 13 lasted several years ?

The attorney normally includes his payment into the bankruptcy ( actually the money paid pays for him first) you should have every quarter been receiving a list of all money received and who was being paid.

In it, you should see how much was being paid to the attorney and how much to the back payment on your mortgage,

Of course all payments still owed to a mortgage is always payable, since a chapter 13 does not do away with that debt.

I don't want to sound mean on this, maybe it is just me today, but these are issues you should have been clear about going into the bankruptcy.

Merely call your attorney for exact details, and/or get a updated payment list from the court

liljess46 · Jun 4, 2006, 06:15 PM

I don't think I explained it right. I was going to get a loan about 6 months ago to pay off my chapter13. The lender said I should as even when I make my last payment there will be more debts, he said the mortgage people will want me to pay for their attorney fees, and also any interest on the payments I put in the chapter 13 it doesn't make sense to me. Thanks

Fr_Chuck · Jun 4, 2006, 06:34 PM

Who in the world told you to borrow money to pay off a chapter 13

First it is against bankruptcy rules in a chapter 13 to borrow money without permission of the trustee. Next you are just getting out of debt, and payments on chapter 13 are done with no interest, and now you have interest on that loan.

So some lender is giving you first almost illegal advice, and next very poor professional advice.

Next all of the late fees, attorney fees and the such should have been agreed to when you set up the chapter 13 to settle any and all late fees.
(as long as you have keep the current payments up)

Please, please talk to your lawyer, they are doing a fraud on you big time.

liljess46 · Jun 4, 2006, 06:49 PM

I under stand what you mean now. I called my lawyer last week and hes out of town til june 13th. His secretary didn't have a clue as what i was talking about when i told her. I am glad i didn't get that loan. I made my last payment so that should be the end of it. They tried to scare me into borrowing money and refinancing my home at this low rate, but the low rate was only for 2 years so i decided to just keep paying my bankruptcy til it was over. Thanks for your fast advice!

Fr_Chuck · Jun 4, 2006, 06:53 PM

Now of course your lawyer may have his own opinion of this, and I can be wrong perhaps, but I fully believe don't even make a large money payment, or borrow any money without talking to your attorney while you are in a bankruptcy proceeding

gamestar10 · Sep 10, 2006, 10:17 PM

Borrowing money in a Chapter 13, even from friends or family, is prohibited. Receiving lump sums of cash is prohibited. Any unsecured loan or credit lines are prohibited. If there is something that you need to buy, a car for example, you must do so with the permission of the trustee and even then the trustee will need to see that you can afford the payments.