Birmingham, AL asked in Bankruptcy for Alabama

Q: I filed Chapter 13 and my home was not included. I make direct payment to the company. Should these payments be put i

in a suspense accounts because the company think it is part of the bankruptcy

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1 Lawyer Answer
Kevin M Ryan
Kevin M Ryan
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Answered
  • Bankruptcy Lawyer
  • Mobile, AL
  • Licensed in Alabama

A: The lender will typically put your post-bankruptcy loan payments into a suspense account if they have filed Chapter 13 just prior to your making a late mortgage payment for the moth of filing. You or your attorney will need to contact the lender's attorney to decide whether the payment for that month will be part of the lender's arrearage claim ( meaning it would be paid in the Ch 13 Plan), or applied to current payments. The lender must have direction from you or your ch 13 attorney as to how the payment should be applied, or you will stay in this limbo ( and incur late fees, etc) going forward. Usually this is a simple fix with one phone call or email to the lender's attorney. Lenders usually have legal counsel appear in the case early on and you or your attorney can determine who that person is by going online at the Court's PACER system.

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