Creditors Will Not Send Statements After You File Bankruptcy

After filing for bankruptcy, there are many who choose to keep debts like mortgages and car loans. However, soon they discover that those lenders have stopped sending monthly billing states. This can lead to confusion and occasionally missed or late payments since it is so difficult to keep on top of everything after bankruptcy. Are these lenders trying to sabotage you, or is there another reason they stopped sending statements?

Why Lenders Stop Sending Statements

When someone files a Chapter 7 or Chapter 13 bankruptcy, an injunction goes out called an automatic stay. This means that no one can take any action to collect a debt from a debtor. This includes everything from credits cards, car loans, mortgages, and can go all the way up to IRS and property tax debts.

Servicers from mortgages, car loans, and student debt take this injunction very seriously, and to them, “any action” can mean just sending a monthly statement. So they stop because they don’t want to risk being sued for violating the automatic stay.

How to Get Statements Again

As of April 19, 2018, your mortgage company is now allowed to resume sending monthly mortgage statements after you file bankruptcy.  If you want your statements again for any of your other debt, you need to contact your attorney and have them send a letter promising not to count the statements as a violation of the automatic stay. After that, they will resume normal billing.

This is just one of many reasons it is so important to have a knowledgeable attorney in your corner when filing for bankruptcy. If you are filing and want to keep getting statements from the debts you continue to pay, contact us today. The Buettner Law Group is dedicated to making the transition of bankruptcy as smooth as possible.