What Do I Need To Know Once I File?

  • How do I handle creditors who call after I file?
  • Should I file my taxes during bankruptcy?
  • Do I keep making my monthly payments related to my home – mortgage, equity line, real property taxes, homeowners insurance and homeowner association dues – after filing bankruptcy?
  • How do I deal with my mortgage lender in bankruptcy?
  • What is a reaffirmation agreement?

Q: How do I handle creditors who call after I file?
A: Creditors get notice that you filed.  The automatic stay requires creditors to leave you alone.  If you get a call from a creditor, tell them you filed and give them your case number.  Write down the date, time, and name of the person who called.  Hold onto the information.  If the creditor calls again, immediately call us and we will deal with the intrusion.

Q: Should I file my taxes during bankruptcy?
A: Yes.  In a Chapter 13, failing to file and pay your taxes as they come due can cause your Plan to fail and your bankruptcy to be dismissed.  Dismissal will expose you to your creditors again.

Q: Do I keep making my monthly payments related to my home – mortgage, equity line, real property taxes, homeowners insurance, and homeowner association dues – after filing bankruptcy?
A: Yes.  Do not get confused and think that the Chapter 13 Plan will make all of your monthly payments.  Because the Trustee receives a percentage of your Plan payment, the common practice in Maryland is to keep mortgage and related payments outside the Plan.  Failing to make mortgage payments will lead to the lender taking action against your home to try and foreclose.

Q: How do I deal with my mortgage lender in bankruptcy?
A: Your mortgage lender or lender for your car may stop sending monthly bills or deducting payment from your bank account.  Make sure to monitor whether the lenders are taking payment.  If not, be sure to send in payment so that you can retain those assets.  Contact us if there is a problem.

Q: What is a reaffirmation agreement?
A: When you file bankruptcy, you receive a discharge for your personal debts, such as the note your owe for your car.  When you borrow money to buy a car, you personally owe the lender.  To secure the loan, the lender takes a security interest in your car.  If you fail to pay, the lender can repossess the car.  Technically, when you receive a bankruptcy discharge your car note will be discharged.  Under a reaffirmation agreement,  the bankruptcy court approves an agreement where that specific debt is not discharged and you will keep paying on the debt.  Some lenders will only allow you to keep your car if you agree to reaffirm the note.  As with any legal matter, it is best to consult with an experienced attorney before taking steps that will affect you financially.

To speak with an experienced, effective, and affordable bankruptcy lawyer, contact us and call today for a free consultation at 443-472-4101.