October 18, 2016
Your bankruptcy pleadings are signed and filed with the court. Your creditors have been notified and now it is time to make your monthly mortgage or car payment. We want to let you know that all creditors have their own procedures on how they handle clients who have filed for bankruptcy. Below are some examples, however, it is best to make your payment as you have in the past, and if the payment is not accepted, then you will need to contact the creditor yourself.
If you normally received a monthly bill/statement in the mail, this may be discontinued by the creditor, as technically they are not allowed to contact you. Please be aware of the date the payment is due and if you don’t receive a bill please contact the creditor and ask how the payment can be made. If the creditor is a local bank or credit union, it is best to go there directly to make the payment.
1. Online Payments
If you normally made your monthly payment on line, go ahead and try to make it online. A lot of creditors will have your account shut off from on line payments, therefore, you will have to contact them and inquire as to how you can make the payment. Some creditors will require you to send in a payment to a special address and some will turn your account back on so you can make your payment online. With this being said, it is best to try and make your payment a few days ahead of time, to allow for time if your payment has to be paid through the mail.
2. Direct Payments to the Creditor
If your habit is to stop into the bank or credit union and make the payment through a teller, then continue to do this. You don’t need to inform them that you are in a bankruptcy, however, if the teller asks you, the please answer yes as the teller may have to route the payment through a bankruptcy department. Generally this method of payment does not change.
3. Letter from the Creditor
Some creditors will send your attorney a letter stating that your account is temporarily being held in the bankruptcy department and an address will be listed in the letter stating where the payment should be sent. Your attorney will send you a copy of that letter. Sometimes these letters will require a signature from you and for you to return the letter to your attorney. You will need to follow those instructions, so please read these letters carefully. If you don’t understand the instructions, please call your Paralegal or Attorney.
Once your bankruptcy has been discharged, you can contact the creditor and ask that on line payments or monthly billing statements are re-installed.