Filing Bankruptcy and Meeting the Bankruptcy Trustee [mortgagehelps.blogspot.com]
www.solvingdebt.ca Alberta bankruptcy trustee - Shawn Stack, an Alberta Bankruptcy trustee at Bromwich and Smith, discusses budgeting and how to be good at it. For more information on budgeting and other financial problems, you can visit Bromwich and Smith's website. http
mortgagehelps.blogspot.com From an Alberta Bankruptcy Trustee: Learn How to Budget
Over the last couple years, filing bankruptcy has become a common occurrence for many Americans. Prior to the financial crisis in 2008, the topic of bankruptcy was taboo in most circles. Maybe it was pride from the embarrassment of failing finances or maybe it was just misinformation that caused the stigma over the years. Whatever it is, the credit industry benefits from people avoiding filing bankruptcy at all cost. As long as they can get people to continue sending the minimum payments, they will get fatter and fatter with all the interest. Now, whether it be by force or just more good information online, most people are seeing there is nothing wrong with bankruptcy. Bankruptcy was created to give good hard working Americans a second chance and fresh start on a stable financial future.
After making the decision to file for bankruptcy, one will need to decide on which chapter to file.
The best thing to do is hire a bankruptcy attorney and let them help the person making the decision. There are two basic chapters of personal bankruptcy, Chapter 7 and Chapter 13. When most people think of personal bankruptcy they think of Chapter 7. Filing Chapter 7 bankruptcy is the most popular because there is no repayment plan required and all unsecured debts are wiped out the bankruptcy discharge. Chapter 13 bankruptcy is best known for its ability to protect property. Since there is a repayment plan required, usually people do not have to surrender any property unless they choose to.The next step is to have the bankruptcy attorney file a bankruptcy petition with the court.
When submitting the bankruptcy petition, an individual is required to complete a pre-bankruptcy credit counseling course and submit the certificate along with the petition. Now that the bankruptcy is filed, the automatic stay will be put in place stopping all collection activity against the debtor. About 4 to 6 weeks after the filing date, the debtor will be required to go to the 341 meeting or meeting of creditors. At this meeting, the debtor will meet the bankruptcy trustee overseeing the bankruptcy filing. For many individuals, this causes gut wrenching worry up until that day. There is really nothing to worry about as long as the individual is being totally honest with the court. The bankruptcy attorney will usually prepare the debtor on what to wear and what will be asked at the hearing. Usually the whole thing will take about 10 minutes after t he Bankruptcy trustee asks about 10 questions regarding the filing. Most people say that the worry was for nothing and it was a breeze.After the 341 meeting, the bankruptcy attorney will remind their client to take the post-Bankruptcy financial management course that is required to be submitted prior to the bankruptcy discharge. Failure to take and submit the certificate will cause a dismissal of the bankruptcy filing. Finally, the debtor will receive the bankruptcy discharge about 2 to 3 months after the 341 meeting and will be on the road to becoming debt-free. In a short amount of time, the bankruptcy filing will be a blip in the past and forgotten.
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Recommend Filing Bankruptcy and Meeting the Bankruptcy Trustee IssuesQuestion by leisa_k: What happens if my bankruptcy trustee isn't making the payments to my creditors? I am in chapter 13 bankruptcy that was confirmed in February. I have made all the required payments to my trustee since I filed last September. She has NOT made a payment to my mortgage company since March and now they want to forclose on my property. I gave my attorney all the payment receipts to prove I made them. Are there any repercussions to the trustee for not making the payments? She has over $ 6,000 of mine that she hasn't paid to my mortgage company. What can we do? Best answer for What happens if my bankruptcy trustee isn't making the payments to my creditors?:
Answer by rpg
Are you sure that your Ch 13 Plan calls for you to make your mortgage payments through the Plan? Some do and some don't. Some Ch 13 plans only pay mortgage arrears through the Plan (i.e., via payments to the trustee) but call for the debtor to make regular ongoing mortgage payments directly to the mortgage company. It depends on how your Plan was written. Also, most Ch 13 Plans call for payment of certain administrative expenses first before payments to creditors begin. Your mortgage company cannot foreclose on your property without first filing (and being granted by the judge) a motion for relief from stay in bankruptcy court. If and when the mortgage company filed a motion for relief from stay, that should have afforded you an opportunity to correct any misunderstandings about where and to whom the payments should have been made. If the mortgage company is foreclosing without first filing for relief from stay and being granted that by the judge, then the mortgage company is engaged in a very serious violation of Federal bankruptcy law, and your attorney can sue the mortgage company for damages in bankruptcy court. What does your bankruptcy attorney say? He or she is the best source of information about your specific case. IF - by some chance - the trustee is actually not disbursing the funds as required (and this would be very, VERY rare -- usually it is some other snafu or misunderstanding that is at the root of the problem) you can report the situation to the US Trustee for your District (a different person with a different role from the Ch 13 trustee), who is responsible for overseeing the Ch 13 trustees in that district, and ensuring that they are doing their jobs correctly.
Answer by jimmyjohn
The mortgage compnay has to go through the court to even think about foreclosing (assuming the mortgage & property were a part of the bankruptcy case). They should not be contacting you directly (unless the Court has given them specific permission to) - that is against federal law. If you meet the requirements and agreements of the Chapter 13, the distribution of monies, or lack therof, should not affect you at all.
