Stay violation?

[Dannmcg357]

I filed CH7 on 2/12/2010. I received a statement from my mortgage company dated 2/16/2010. Not a biggie rite, just a few days after filing could just be there system automatically billing etc. But on this bill is added a line in the amount of $947.00 "Legal Bankruptcy Expenses". I'm turning it over to my atty Monday. What do you think, violation?

[justbroke]

It depends. At the bottom of the page, the lender probably included standard language indicating that "if you filed bankruptcy, then this isn't an attempt to collect a debt" (paraphrased).

They can send "informational" messages to you. They just can't take any action to collect to continue the collection or a pre-petition debt.

[Dannmcg357]

No, no disclaimer of any sort. Just privacy statement. It is actually February Payment due plus past due plust Legal Bankruptcy Expense. Only discaimer present is one stating they may report negative information to credit bureau. LOL

[justbroke]

Yeah, just pass it to your attorney. It's probably just due to them not receiving "notification" yet.

[Dannmcg357]

Its the "Bankruptcy Legal Fee" on it they are billing for that is like, in your face with your
Automatic Stay that pisses me off. Why would that be on it?

[fireworks]

That sounds like awfully screwy accounting to me. Why add another grand onto your debt if they know you're not going to pay it?

The only thing I can imagine is that they're hoping that you'll go into a 13, and by padding the amount that you owe them they'll get a greater share of the payments.

Or...maybe it's a way to increase their payout from an insurance company. Are you paying PMI? Are you giving up the house in your bankruptcy? It may well cost them that much in fees to various subcontractors to foreclose on your house, clean it up and get it sold.

Even if it IS a violation by the letter of the law, I don't know that it would be worth it to pursue. I've received several bills, collection notices and settlement offers since we filed last week. They all are very obviously an attempt to collect and in fact say so in big letters, "this is an attempt to collect a debt and all information will be used for that purpose." I'm keeping a file of them and if any of those agencies turn nasty I'll sue. If all they're doing is sending letters, it's not worth my time and energy.