After Ch13 Discharge + Trustee sent Motion Rule 2004

[Leahnc25]

Hi. Has this happened to anyone else. I'm reading that it's rare.

We received our Ch13 discharge the end of April 2023. We filed in 2018. Five long years. Today almost 2 months after our discharge, we received a Motion / Rule 2004 letter in the mail from our Trustee "Motion for Production of Documents under Rule 2004"

The trustee over our case is directing our current mortgage servicer to produce and submit documentation to the trustee. Our mortgage was sold to another servicer in 2021 about 2 & 1/2 years after we filed. I'm so concerned about this and not sure what to think? I was celebrating our discharge and now this.

There are 10 items in the letter listing the proof of claim from the mortgage company, the transfer of the claim, disbursements being paid through our trustee, etc.. line 7 States the trustee has been unable to obtain loan information from the creditor sufficient to allow him to fulfill his duties

The trustee ➡️ is directing the creditor to produce and remit to the trustee complete loan information, itemized outstanding changes, fees, principal and interest due and owing and any other charges claimed by the Creditor to be owed together with a history of all payments made by an entity including the trustee to Creditor for credit against such loan balance, regardless of whether or not such payments are actually credited by the creditor against the outstanding loan balance.

I really wish this bankruptcy was officially behind us once and for all.
I'm not sure what I need to do at this point other than hope all our mortgage payments were applied correctly.

Thank you

[justbroke]

At least your Chapter 13 Standing Trustee appears to be doing a thorough job. The Trustee must make sure that the payments were made and any of the arrears were cured. I assume you were paying the mortgage through the Trustee. When a home mortgage loan is paid through the Chapter 13 -- and even sometimes outside the Chapter 13 -- it invites all sorts of issues at discharge. These lenders use "suspense" accounts and their systems like to keep billing late fees and "inspection" fees throughout the Chapter 13. They should not do that but most of them have a way to fix that once the discharge is entered.

In this case, it appears that the creditor may have responded and said that the arrears weren't cured and now the Trustee says... prove it.

But, alas, remember that the discharge is the prize. The official closing of the bankruptcy, as you see, is a bunch of paperwork and other hyper-technical things.

[Leahnc25]

Thank you so much for the quick response & explaining. I was worried after reading the letter they could revoke our discharge somehow .. I panicked.

Yes, we did pay the mortgage payment and arrears through the trustee. The mortgage servicer we were transferred to in 2021 has terrible reviews & I really wish we weren't sold to them. They told us we had late fees when we paid our very first payment after discharge. They also had added inspection fees.

I hope they resolve this quickly and close my case!.

Thank you so much!

[justbroke]

Well, I hope that they do resolve it quickly. It's a royal pain, but any past Chapter 13 debtor will tell you that this often happens. Hopefully they find the issue and the Trustee remains on your side.

[Aspensage7]

This is good to know. Our loan was also sold to "Mr. Cooper". We paid outside of the Ch 13. 1/2 way through the Ch 13 our atty called and said they were filing a motion to dismiss the Ch 13 protection and move on foreclosure because we were behind on 2 payments. Which wasn't true --- we were late on two payments. But we paid. It ended up costing us precious money we didn't have as we had to pay Mr Cooper's atty fees. Now, I call them once a month and make payment over phone and get the payment confirmation #. Not taking any chances. Regardless of how you got yourself into the mess in the first place, there is no mercy. I cannot wait until ours is officially over. This will have been the longest 5 years of my life.