Stopped Getting Bills - Should We Still Make Payments

[enginerd]

My wife and I had our 341 on October 29th. No surprises. No assets. Little over median, but still passed means test. We are keeping our home and two vehicles. We owe $156k on our first mortgage to Bank of America and $50k on a 2nd to Huntington Bank. We had a recent appraisal of $178k. So, it appears we have approx. 22k equity. We have not re-affirmed anything but one of the car loans. The last few months starting right after we filed, we stopped getting payments mailed to us for our student loans and 2nd mortgage. Up until now we've been calling them and making payments over the phone. But, what is going on? Should we be calling these guys up and making payments? I know bk doesn't erase student loan debt, but should we stop making payments on the 2nd? Is there too much risk that they would forclose?

[Dee]

Once they get notice of the automatic stay they will stop sending bills because they are required to stop attempting to collect the debt. However, you need to continue to pay anything you intend to keep or that you will not be discharging.

[dumpinmydebt]

100% agreed with Dee.

[AngelinaCat]

If you are doing 'ride-throughs', the answer is yes. If you have reaffirmed a loan, then the answer is yes. For all other debts, especially unsecured debt, such as credit cards, the answer is a resounding NO!

[tcreegan]

Hi enginerd,

Student loan people won't bill you until you are discharged, then back to whatever you were b4 BK.

As to the 2nd, figuring in the cost of sale (10-20%), there will only be enough proceeds to cover the 1st

...so after discharge and no payments for a few months, you approach the 2nd lender and try to negotiate a settlement.

Good luck with this,

Tom in Colo