In discharge status-mortgage Q.

[Capri68]

Hello. We are in a 5 year 100% repayment plan. Last payment was sent in Nov. Our mortgage is included. We have received a copy of the Order for closure sent to the court. The NDC website says case closed. But ive read enough here to know to create a pacer account so I did today.
Question. Will our mortgage company start reporting to the credit bureau again? Ive read comflicting information on this. I also read that since the mortgage was included it will come off our credit report entitely.
also, i checked out online mortgage account and several fees were added last week for bankruptcy, assessment, inspection fees etc. Ive emailed our trustee on this and waiting for responses.
its been almost 4 weeks since the trustee has received our last payment. Is anyone experiencing delays from the court in the discharge and closure process due to covid. Our trustee has been working quickly im just not sure what to expect in response from the court for their final approval.

[justbroke]

First, Welcome to BKForum. Also, congratulations on completing your Chapter 13. It is a serious thing to finish.

Hello. We are in a 5 year 100% repayment plan. Last payment was sent in Nov. Our mortgage is included. We have received a copy of the Order for closure sent to the court. The NDC website says case closed. But ive read enough here to know to create a pacer account so I did today.

I think you did not mean "foreclosure" but you mean that your case is going to close soon. That's good!

Question. Will our mortgage company start reporting to the credit bureau again? Ive read comflicting information on this. I also read that since the mortgage was included it will come off our credit report entitely.
also, i checked out online mortgage account and several fees were added last week for bankruptcy, assessment, inspection fees etc. Ive emailed our trustee on this and waiting for responses.

Your Trustee won't know a thing about what your mortgage company will or will not do. That's up to the mortgage company to decide when to start reporting. In some cases, after discharge, they will start automatically or you could ask your attorney to send them a letter asking them to restart the billing.

Any strange fees that appeared after discharge, and are related to the bankruptcy, should be discussed with your attorney, not the Trustee. If you filed Pro Se and don't have an attorney, you'll need to address these "extra" fees added to the account. Technically the bankruptcy was to cure any issues and a creditor should not be charging anything extra after the fact. But, alas, this is one of the issues with exiting Chapter 13 with an active mortgage. The banks just seem to not be able to get the balance correct and your attorney -- if you have one -- is better suited to make those demands. Otherwise you are on your own as the Trustee will not help with this type of issue.

its been almost 4 weeks since the trustee has received our last payment. Is anyone experiencing delays from the court in the discharge and closure process due to covid. Our trustee has been working quickly im just not sure what to expect in response from the court for their final approval.

The normal discharge process takes about 30-90 days from the last payment (and closer to the 60-90 day mark). The Trustee has to reconcile everything and they typically wait 30-60 days to make sure all checks have been cashed, before they commit to the discharge. This prevents issues with checks that are returned or never cashed. It's part of the process.

As you are likely aware, the Chapter 13 Trustee will file a final accounting and report indicating that they have reconciled everything and then the case can close. The discharge, however, should likely occur 30 days or so after the final payment. The discharge is not the final case "administration" and close.

[Capri68]

Thank you very much. We do have an attorney so we will call him tomorrow about the added fees. I saw trustees note to the court stating he is waiting on all checks to be cashed. I'm so happy to be done with this. I can now save an extra 1500/month and have almost 3 months of emergency saved up currently. I have planned to pay this mortgage off early in 3 years.

the last 5 years has been full of stress and anxiety. Im glad im at the end.

[sophieanne]

Congratulations for being at the end of your plan..what a great way to end this year!! Once everything is fully closed you can talk to your bank about your mortgage reporting again. Mine did once it was closed..it wasn’t enough for them to have the discharge notice..they waited for the notification that everything closed. Good luck as everything moves forward!

[shipo]

Congratulations Capri68, I finished my Chapter 13 earlier this year, just as the whole COVID-19 thing was kicking off here in the States. To give you a feel for the timeline you *might* be facing due to the Pandemic this year, I'm providing you my dates:

• 07-Feb-2020 - my final payment to my Trustee was posted
• 04-Mar-2020 - my Discharge was ordered by the United States Bankruptcy Judge overseeing my case
• 23-Jun-2020 - my case was officially closed

As justbroke wrote, figure at lease 60-90 days for the official closure of your case. In the meantime, you can start the work of rebuilding your credit; the easiest way is to to get the ball rolling is to apply for a Secured Credit Card, use it, and pay it off every month.

[Capri68]

Hello and thank you. My update is i have receiced the discharged and awaiting the trustee to file the final audit which he said will happen after the mortgage company last payment clears the bank. I called the mortgage company again about the discrepancy when i start paying and they updated the information finally to teflect what the lawyer n trustee said. The previos Customer service agent was wrong in her information to me. They will start reporting to the credit bureau as well. Yeah.

1. The mortgage company applied last payment so how long can i expect the final audit to be sent to the court. Patient inpatient to be closed.

2. Whats next. Do i get a form of closed bankruptcy from court? Like i did the discharge?

3. In response to the credit building i called my credit union. It was suggested i take a secured personal loan in a small amount and set up automatic payments for 6 months. 3 percent interest. No credit check to ding my credit score and it will be reported to credit bureau. Can this happen after discharge or do i need to wait for judge to close case. I did 100 % repayment plan and all is

This has been one of the worst events of my life due to situation beyond my control as i had perfect credit before an event. However i did learn to manage and cope and survive this.

[Barbisi]

I agree 100% with you Capri68 - this has also been one of the worst if not the second worst (after my mother's death in 2016) event of my life! We have experienced all the most stressful events in life in the last 5 years ,save divorce and forced relocation.Ours is supposed to end in Feb. 2022. Best of luck on a brighter and better future!

[shipo]

3. In response to the credit building i called my credit union. It was suggested i take a secured personal loan in a small amount and set up automatic payments for 6 months. 3 percent interest. No credit check to ding my credit score and it will be reported to credit bureau. Can this happen after discharge or do i need to wait for judge to close case. I did 100 % repayment plan and all is

A small secured loan and a secured credit card with a modest line of credit are two of the best ways of getting positive reporting to the credit bureaus. As for the "when", literally a week or two after your Discharge; I was approved for my first secured credit card just three weeks after my discharge and months before my final closure was granted.

FWIW, as I understand it, a credit card, secured or otherwise, has a greater impact on your credit rating than a loan, secured or otherwise. If a card with $1,000 or less of a credit limit would work for you, then by far the easiest to obtain is the CapitalOne Secured Credit Card. If you want a higher line of credit, many banks, Bank of America, Wells Fargo, and TD Bank offer Secured Credit Cards with much higher limits, up to $10,000 for Wells Fargo.

[justbroke]

1. The mortgage company applied last payment so how long can i expect the final audit to be sent to the court. Patient inpatient to be closed.

It's a slow process but they have to make sure everything is correctly applied and the accounting is accurate.

2. Whats next. Do i get a form of closed bankruptcy from court? Like i did the discharge?.

No. You will not receive any notice that the case has closed. You could use PACER to determine if the case has closed. If you don't have PACER... don't worry about it. You may be able to ask your attorney if they'll let you know when the final report is filed. Case closure should be shortly thereafter.

3. In response to the credit building i called my credit union. It was suggested i take a secured personal loan in a small amount and set up automatic payments for 6 months. 3 percent interest. No credit check to ding my credit score and it will be reported to credit bureau. Can this happen after discharge or do i need to wait for judge to close case. I did 100 % repayment plan and all is.

This is perfect. See what shipo wrote on this topic.

[Capri68]

Thank you for that. I could not find information on discharge vs closure doing google searches.
interestingly my credit unions secured card does not report to the credit bureaus. Only the secured personal loan.
ive always had my car loans and credit cards thru my credit unions and set up auto pay. Ive also not charged anything to credit card since 2005. Cash only.
due to job loss and attempt to modify home the mortgage company screwed me over. Said i would qualify for a modification due to built equity and then said to make no payments during the process until approved. Then they would say i didnt fax this or that. So i would re fax. I still have all that paperwork n fax receipts. Months later i received a denial based on missing paperwork and told to vacate my home in 3 weeks with no where to go and no money. Added lawyer fees of seven thousand dollars. Hence the chapter 13. I was told it is an industry secret that if your equity rich you will be denied a loan mod. The mtg company then takes your home.
up until then i didnt charge on credit and my auto loan was 100 percent on time.

I prefer not to pay loan interest if i dont need to. Only for home n auto. Im hoping i can continue to build credit for next auto loan. My car is 12 years old.

[shipo]

Capri68, if you don't want to pay any interest, then I believe your best option is to get a Secured Credit Card. Use it like your debit card and pay it off every month and you won't be charged a penny of interest. It is a win-win situation, using a credit card like that allows you to get good reporting to the credit bureaus and not pay a penny of interest. Better still, some Secured Credit Cards offer "cash rewards" of at least 1% of your purchases; kinda-sorty like reverse interest; instead of you paying interest, the credit card issuer pays you interest.

[Capri68]

Thank you all.
i just received my copy of the final audit and checked my pacer account. I was officially closed on Jan 08.

The mortgage company has reopened my account in my credit reports and my secured loan of 250.00 started to report.

My credIt score has already jumped into the good or high fair score range per credit karma which i know isnt the same as fico but gives me hope.