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What do i do if my lender is claiming my mortgage post petition payments were never made during my bankruptcy period?

Riverside, CA |

we filed chapter 13 in july 2010 to save our home from forclosure by the advise of our now bk attorney in which we should have never hired by the way and we were told the bk would pay our arrears through the trustee and post petition payments would be paid by us when the case was approved in which it was in july 2010. Everything went smooth with all payments made accordingly until 13 months into it we discovered that our payments were not being applied according to the bk code and our lender was claiming we were in default beginning dec. 2010 ... how is that possible when we made flawless post petition payments til atleast aug. 2011 in which we stopped pp payments when we discovered they were not applying them and our lawyer wont help or return our calls ..i have reciepts to prove payments

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Attorney answers 4


No one here can possibly tell you what happened in your case or with your payments, or why the lender believes there is a default. The only person who can do that is your lawyer so discuss with him/her. If you are not happy with your lawyer and believe the relationship cannot be salvaged, get a second opinion.



thats why im asking for a second opinion

Scott Benjamin Riddle

Scott Benjamin Riddle


A "second opinion" is based on a review of all relevant facts and documents related to the case, not a couple sentences on a website.


You would be surprised but this happens in a number of bankruptcy cases across the country. The mortgage company tells its out-side attorney that there is a default in payments and they want the stay lifted. It's important to realize that the creditor's attorney typically doesn't handle/document your payments. They're just told what to do by the mortgage company that have computers telling them what's what. And computer error can be traced back to human error.

Typically what happens in this type of situation is that if you have proof that the payments were made, you tender copies of the proof to the attorney for the mortgage company and then they investigate the situation. If you have the proof and all the payments were made, you would be hard-pressed to find a judge willing to grant the mortgage company any form of relief.

If you are interested in a more detailed legal analysis of your situation and reside in Illinois, contact 360 Legal toll-free at 855-360-4608 or at I am only licensed in the state of Illinois. This is only my general observation about the law and my experiences as a practicing attorney. This is not legal advice and should not be construed as legal advice. This does not create an attorney client relationship. If you wish to obtain legal advice or create an attorney-client relationship, then you should directly contact a lawyer licensed in your state who you believe possesses the knowledge and experience to assist you with your case.


The lender is bound by the terms of the plan. If you made your payments according to the plan, and you can prove it, you are in the right. But if you stop making payment,s you are in default under the plan, and your lender can seek relief from the automatic stay. If your attorney is not working for you, you need to hire a new one ASAP.


The short answer is that you need a new attorney to help you sort through this. if you've been making all of the post-petition mortgage payments on time and all of the trustee payments, then the might have been applying your post-petition mortgage payments to the arrears by mistake.

The last time I faced this issue, the client sent me proof of timely payments and I sent them to the bank's attorney. They bank backed down very quickly.

First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. We also do other stuff and we do it well, but Congress wants me to post this notice. Second, nothing on this site is legal advice. You are not my client unless you enter into a written agreement signed by you and me.

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