When you file bankruptcy, a notice is sent out to all creditors, including your car lenders and mortgage companies, whether your are current or delinquent. Post-petition, you will likely not receive any statements as they normally transfer your account to their bankruptcy department. They do not send you statements because it could be considered an act to collect on a debt and a violation of the automatic stay. In addition, auto-pay arrangements will also be discontinued.

In Chapter 7, continue to make your monthly mortgage and car payments unless you are going to surrender your home or your car. In Chapter 7 there is no trustee to take your payments. You are responsible to keep your payments current. The purpose of most Chapter 7s are to wipe out miscellaneous consumer debt such as credit cards and medical bills. You cannot eliminate mortgage payments or car payments if you are going to keep the house or car.

In Chapter 13, continue to make your post-petition mortgage payments, unless you are going to surrender your home or if you were in arrears as of the bankruptcy filing date and your mortgage payment is being paid as part of your plan payment. For those that are in arrear as of the date of the bankruptcy filing, the Chapter 13 Trustee will take over making the ongoing mortgage payments to ensure that the mortgage is current thoughout the case. If your car loan is being paid as part of your Chapter 13 plan, you do not have to make the monthly payment as it is part of your monthly plan payment. If you are making direct payments then make your payments as you did before – same due date, same mailing address- regardless of whether or not you receive a statement. Also keep your property insured. Once your discharge is entered, you may begin to receive statements again depending upon the financial institution.

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