Is it true that if servicer refused my timely payment (in USPS money orders) debt can be discharged?

Asked over 3 years ago - Buffalo Gap, TX

Letter from Chase attorney (Barrett Daffin etc) threatening foreclosure gave dollar figure to bring current. I had never heard of attorney so sent $$ directly to Chase and letter to attorney asking for verification of indebtedness. Meanwhile I sent Chase May pymt via MO. Chase sent all money orders back (except one for $65.76) saying "insufficient to cure default"?? Now they're offering reinstatement with late fees, attorney fees, corporate advance charges (wth is THAT?!?)

Attorney answers (2)

  1. Jay Jump

    Contributor Level 6

    Answered . The discharge of a debt has nothing to do with the timeliness of payments. Discharge of the debt is based on whether or not you qualify for discharge under the bankruptcy code.

    When a mortgage servicer or note holder decides to push the loan into foreclosure status, they can refuse the payments unless you pay the demanded amount in full. This is commonly known as acceleration. They have accelerated the payments on your loan which they are entitled to do if you have defaulted on your obligation to them. The acceleration can only be cured by tendering the amount demanded on the foreclosure/default notice or by filing a Chapter 13 bankruptcy and proposing a plan of reorganization. You could also request a loan mod through the mortgage servicer, but the outcome of that is usually less than successful in my experience.

    This answer is intended for informational purposes only and no attorney/client relationship is formed by the... more
  2. Dorothy G Bunce

    Pro

    Contributor Level 20

    Answered . Just refusing your payment won't act to discharge your debt. You are relying on one of those urban myths that refuse to die.

    Hope this perspective helps!

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