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Bankruptcy is complex and requires a lot of time to understand. Having an experienced lawyer like those of Los Angeles based bankruptcy law firm Recovery Law Group can be a huge asset. Managing various loans, filing papers and reaffirming certain debts can be quite confusing for the layman. Though, bankruptcy is considered to give you a way out from a huge amount of debts; yet sometimes certain debts might remain even after completion of your bankruptcy chapter. In the case of Chapter 13, individuals pay some portion of their debts through the repayment plan. These may include secured debts like mortgage or car loan, as well as unsecured debts like credit card bills or utilities and priority debts like alimony too. However, there are chances that the mortgage company might ask you for additional payment despite your bankruptcy discharge. This can be a point of contention.
An individual can owe money to mortgage company even after bankruptcy discharge if they had reaffirmed the loan after filing for bankruptcy. In Chapter 13 bankruptcy Los Angeles, you agree to pay your creditors through the court-approved repayment plan over a period of 3-5 years. This provides your creditors with a percentage of the dues which was owed to them. You also have the option of reaffirming certain loans like auto loan and mortgages if you wish to keep your vehicle and home respectively by making regular payments towards it. Once the loan is reaffirmed it is no longer considered a part of bankruptcy and needs to be paid in full. If this happens, you might end up owing the mortgage company money even after your bankruptcy ends.
However, if you had not reaffirmed the loan and it is being incorrectly reported, you can take steps to rectify the mistake. This can be done by sending a copy of your bankruptcy schedule “A,” your bankruptcy petition and the copy of bankruptcy discharge to any of the three credit reporting agencies. Once verification regarding the claim is done, account information is updated on your credit report. Additionally, you can also contact your mortgage company for a query related to the amount you are being asked. You might need legal assistance for this. To avail the expertise of experienced bankruptcy lawyers, you can give a call at 888-297-6023.