Mortgage Company and Bankruptcy

[justbaby]

I filed Chap 13 on July 23rd! Knowing that it would probably take time for the information to get to the mortgage company, I kinda helped move it along a little faster! I am in active foreclosure, no sale date but I didn't want to risk anything...I rec'd a call from the mortgage company (Wells Fargo) which alerted me that they hadn't rec'd notification yet. I called my lawyer's office and the paralegal called Wells Fargo but they said that I had to give them permission to talk her...(whatever) but she was able to get a fax number and forward them the filing information. That was a couple days ago...called the mortgage company today and they still hadn't put me into active bankruptcy even after receiving the filing information...it was apparently just sitting in the queue? So they transferred me to the bankruptcy dept, she pulled the fax and put me in active bankruptcy...YAY!! Follow up is important!!!

[lrprn]

Great that everything worked out for you in this case. However, here's some well-intended advice for all Ch 13ers to keep in mind as their cases progress....

(1) NEVER contact a creditor without talking to your lawyer first and getting his/her ok to do so.

(2) Always discuss your concerns with your lawyer before acting on anything related to your Ch 13 on your own. Chances are in this case if Justbaby had done that, he/she would have found out that everything they did directly with their mortgage company wasn't necessary. Once your 13 is filed, the Ch 13 filer is protected by their automatic stay. Even if the mortgage company had foreclosed, they would have had to reverse it as soon as they received notice about the 13 filing from the court which would have happened within a week or two at the most.

(3) Ch 13s move along at their own glacial pace. You can't rush the bk court. It's a waste of precious energy to try. They operate by their own rules that frankly we filers don't always understand very well. That's why we have legal representation - our lawyers are our interpreters to help us understand how our filed bankruptcy works legally and how the court functions internally. Having a good lawyer is key to having a good Ch 13 outcome.

[TexasEx]

Good comment on the glacial pace. We have a rental home that we surrendered in our 13. Last payment was March of 09. We filed December of 09, were confirmed in Feb of 10, and to this day the bank has not tried to lift the stay in order to foreclose on the house. Meanwhile the house sits abandoned becoming an eye sore to the neighbors (sorry!) while the liens continue to pile up against it (HOA, trash, sewer, etc). I think glaciers retreat faster than this.

[justbaby]

thanks LRPRN, I know it was risky and will never contact another creditor...from now on I will just wait! I just didn't want to risk anything not knowing that it could be reversed. Thanks for the information!

[minan]

lrprn: thanks for the advice. I just filed 13 last Friday and am already spending hours writing emails (Not sending them), making notes, etc...for my atty who told me today that I need to relax a bit.

I am going to have to remind myself everyday that things are not going to go at a fast pace (or my pace) and that's going to be hard.

Not sure why I feel so scared every day since I filed. But thanks for the advice.

[justbaby]

You know I feel the same way! I can't wait until my meeting of creditors...maybe it will be a little better after that?

[lrprn]

Not sure why I feel so scared every day since I filed.

You've just thrown your hat into a brand new bk world where you likely have less control than you ever have had before in your life. That's enough to make anyone nervous.

As time passes after filing and the horrible things you keep expecting to happen never do, it's easier to relax. Keep asking questions and sharing your concerns here - we'll do our best to talk you down off the ledge!

Don't worry - most of us felt exactly like you do now. It does get better - I promise! Do your best to take your 'worry' energy and turn it to making or tweaking a really good family budget so you can start saving up for your emergency fund.

We do have some control over our budgets. Learning to live within it every single day after filing until it becomes a habit is vitally important to surviving the long years of ch 13. Won't always be possible every month - stuff happens - but the discipline of getting complete control of your spending and finally knowing where every penny of your money is being spent really does go a long way to reducing your anxiety. Just wait and see