I am on my way back from Seattle where I had the privilege to speak at the annual seminar of the National Association of Chapter 13 Trustees. My topic sounds like boring bankruptcy geek-speak (and it kind of is). However, it is also a subject that helps protect so many homeowners in Chapter 13 bankruptcy cases. The subject is Federal Rule of Bankruptcy Procedure 002.1 (don’t fall asleep on me). This rule ensures that mortgage companies properly apply payments against the borrower’s account.
Rule 3002.1 also ensures that mortgage companies cannot hide expenses in the mortgage accounts of Chapter 13 debtors. These fees must be disclosed in notices filed with the Bankruptcy Court within 180 days of when the fees or expenses are incurred. If they are not timely disclosed, they can be disallowed. These notices also can be objected to and the expenses challenged if they are believed to be illegitimate or unreasonable.
At the end of a Chapter 13 case, a procedure will take place that should provide debtor homeowners with great peace of mind. The mortgage creditor must either must admit that the debtor borrower is current on all of their mortgage payments or else tell the specific reasons why. This gives people in Chapter 13 the security of knowing that they are emerging from Chapter 13 with a true fresh start.
If you are having trouble keeping up with your mortgage payments and need a chance to get current with extended, interest-free installment payments, Chapter 13 may be the answer for you. Give me a call and we can talk about how I can best help you get on the right track to preserve one of your most treasured possessions: your home.
To see the brochure about the topics presented at this year's Chapter 13 Trustee's seminar, please click on this link.