Q: Is it legal for a lending institution to continue to bill a customer after a discharged bankruptcy on the mortgaged
property; and to bill the customer for the Hazard Insurance purchased by the customer? Our attorney provided all required documents to the lender; customer's mortgage record states discharged bankruptcy. Yet they continue to bill us for the loan payments and the insurance.
A: Contact your bankruptcy lawyer about this. It sounds like this is a residential mortgage...that is a mortgage on your home. If you are living there and not giving the property up in the bankruptcy, then you will need to work out some kind of an arrangement with the mortgage company. This may be in the form of a 'reaffirmation' of the mortgage. If you have reaffirmed, then the mortgage company is expecting to be paid. If not, then the mortgage company will be trying to find a way to get the property back. They will need to have insurance in place in case some thing happens. If you are not reaffirming, but having the debt discharged, they may continue to bill you for a while, but they won't sue you.
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