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15

May 2021

After Bankruptcy, are you getting your mortgage statements?

Posted by / in Weekly Posts /

After Bankruptcy, are you getting your mortgage statements?

After you file bankruptcy, you are still supposed to keep getting your mortgage statements.  But, are you?

We talked about after bankruptcy mortgage statements at the NACBA 29ths annual convention

This is the Dolphin Hotel, where the 29th annual convention of the National Association of Consumer Bankruptcy Attorneys was planned. But it was moved to the internet, because of covid.

This question came up at the 29th Annual Meeting of the National Association of Consumer Bankruptcy Attorneys.  (I’m at that meeting this week, which was supposed to be in Orlando, but it’s actually on the internet.)

The Dodd-Frank law says that your mortgage company is supposed to send you your monthly statement.  And the Consumer Finance Protection Bureau says that still applies even after you file bankruptcy.  (Unless you say you don’t want them.) See 12 CFR § 1026.41(a)(2) and §1026.41(e)(5). 

Lots of us bankruptcy lawyers, meeting afterward on Zoom, think our clients are NOT getting their statements.

I’m Gathering Info

If you have experience NOT getting your mortgage statements after bankruptcy, let me know. I’m gathering info for the leadership of the Consumer Bankruptcy Attorneys. We want to see if there’s a big problem; and figure out what to do.

Laura@robertweed.com is keeping track of this for me.  Also, you can contact me directly. Robertweed@robertweed.com.  Thanks.

Are your getting your after bankruptcy mortgage state? Our first reply.

While I was writing this, I did a test.  Along with scanning the Selene Finance mortgage payment to one of my clients, I asked was she also getting a copy, or am I the only one. (I routinely scan and send these statements out. But I didn’t ask that question before.) 

She replied instantly, “I never received any statement from them. Can I sue them?”

So, I told her, that’s a great question. It’s what we are trying to figure out.

 

 

 

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09

May 2021

For most people bankruptcy works. For most people, debt settlement doesn’t.

Posted by / in Weekly Posts /

For most people, bankruptcy works. For most people “debt settlement” doesn’t work.

One reason.  The debt settlement people charge enormous fees–FDR and NDR charge at least $6,000 to “settle” $40,000 in credit cards (and you still have to pay the settlement).
Plus, they usually don’t work
.
See this email I got this email today from Ed.
Ed is paying the debt settlement company and got sued anyway. Why? Because the debt settlement people usually settle the smallest debts first.
And while you are paying off the small settlements, do the big cards just wait patiently? Or do they sue?
You can read what happened to Ed….What do you think?

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07

Feb 2021

The three toughest questions at your bankruptcy hearing

Posted by / in Blog, Weekly Posts /

The three toughest questions at your bankruptcy hearing.

The three toughest bankruptcy hearing questions are NOT what most people expect.  The bankruptcy trustee does NOT ask you to explain how you got into this mess. They are not asking about your plans for the future.  And the creditors are NOT there demanding their money.

Have You Sent the Bank Statements?

So what are the hard questions? For most people the toughest bankruptcy hearing question is: Have you sent us all your bank statements, showing the balance on the day you filed your case? Especially if you have old accounts you don’t think about because you never use them–getting those bank statements in can be a tough challenge.

Can You Find The Mute Button?

One bankruptcy trustee question: Can you mute your phone?

Finding the mute button can be a challenge for your bankruptcy hearing. Progressive uses it as a joke in one of their TV ads.

The next bankruptcy trustee question is, can you find the mute button on your phone?  People who do conference calls at work figured out the mute button long ago.  For other people it’s a challenge.  (Progressive Insurance uses a mute button as a joke on one of their TV ads.)  

The bankruptcy court in Alabama has mute button instructions on their webpage. 

Why is the mute button important?

When you call into your bankruptcy trustee, there will be almost thirty people on the line.   About twenty people filing bankruptcy, maybe eight lawyers, plus the trustee and helper.  

Everybody needs to be on mute when it’s not their turn. Otherwise the background noise–fans, computer noise, barking dogs, children–the background noise makes it impossible to hear.  So, be sure you can find and use the mute button.

Can I Whisper to My Lawyer?

The third toughest bankruptcy hearing question is your question, not a bankruptcy trustee question. Your question is, how do I talk to my lawyer?

When you dial in to the trustee phone number, you don’t know that whether I’m there.  (And I don’t know if you’re there, either.) That’s the biggest disadvantage to doing these on the phone. 

You for sure want to know I’m on the call and you might have a last minute question, too. You can’t ask me a question out in the hall because there is no hall.

We can’t whisper–because we are broadcasting to the whole room. That why we need to email each other ten minutes before the hearing starts.

I’ll shoot you and email letting you now I’m on. Please reply. And email any last minute questions. Use robertrossweed@gmail.com. That goes straight to me.

(We’ve been doing these bankruptcy trustee hearings by phone for ten months now. And I overhear a lawyer whispering with their client almost every hour. And of course the whole room hears it.  So far I haven’t overheard anything really bad–like, I’m sure glad they didn’t ask about that farm in Kentucky. Anyway, you and I won’t do that. We know to whisper by email.)

 

 

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NORTHERN VIRGINIA BANKRUPTCY LAW OFFICES