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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31770
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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We filed chap 13 in 2005, then converted to 7 in 2009, due

Customer Question

We filed chap 13 in 2005, then converted to 7 in 2009, due to job loss. all are now discharged. During 13, trustee held 18k for mortgage payments because mort co didn't make their new address info known,( Name change.) We have ourselves (without legal help) filed a motion to disperse funds to ourselves to pay the mort. co. (mort. co won't work w/us and as such, we are in pre-forclosure!) court date set for Sept 20, Our Attny. says he must reopen the case to serve any creditors who might have an interest. The money was and is being held for mortgage payments only. What can we do to have this money returned to us so that we can pay the mort. co so we don't lose our house?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 6 years ago.

Hi - my name is Kirk and I'm a Bankruptcy litigation attorney here to assist you.


If the money was paid by you through the plan to cover your mortgage payments, the court should order the trustee to transfer those funds to the mortgage company.


However, it is true that you would have to reopen the case and notice the motion to transfer/disburse funds to make sure all creditors are notified. I don't see how any creditor could actually claim the money if it was paid specifically for the mortgage debt, but you still must notice the matter and give all interested parties an opportunity to object.


If you're already underway with foreclosure proceedings, you should get your attorney to act on this asap.