Bankruptcy, a Notice of Termination, & the 341 Meeting

What is termination of stay? A termination of stay is when a creditor has gone through the proper court procedures to get the protection lifted on their secured claim; for example a house or a vehicle.
By: Bankruptcy Chapter 13
 
July 7, 2010 - PRLog -- What is termination of stay? A termination of stay is when a creditor has gone through the proper court procedures to get the protection lifted on their secured claim; for example a house or a vehicle. What happens is after you filed bankruptcy, you became delinquent to the mortgage company and they filed a motion for relief from stay to try and take your home. We are able to go into an agreement to prevent that. In turn, you as the Debtor has to make sure that you make your regular monthly payments to the mortgage company, if you fail to do so, then they will file a notice of termination.

What do I do now? Now that the house is not protected, the best option is to contact the loss mitigation department of the mortgage company and work out some arrangements with them to keep your house. You could also dismiss your current case and refile, but this is very risky to accomplish. Your current case has to be dismissed before another case is filed. This means that you have to wait for the trustee to dismiss the current case. If you already received a notice of termination, it is going to be very difficult to make this work.

If you receive a notice of termination on your property, contact your attorney’s office immediately to find out what your options are.
Everyone who files a Chapter 13 case is required to attend §341 meeting of creditors. The primary reason of this hearing is for the Trustee to review all of the financial information provided by the debtor and to address any issues presented by Creditors that may appear at the hearing. Many Creditors choose not to attend the hearing, but prefer to file objections prior to confirmation. Generally, the only Creditors that appear at these hearing are the office of TX Comptroller, Attorney General and Internal Revenue Service.

Our office stresses to the Debtor that attendance of §341 meetings is mandatory, however some debtors do not heed the notice from the courts, trustee and/or our office. Failure to attend the first scheduled §341 meeting is easily solved with a reset of the §341 meeting. If a debtor fails to appear at the Reset §341 meeting then the Trustee’s office will file an objection to confirmation as well as a Notice of Intent to Dismiss.

At this point it is extremely difficult to get another hearing reset prior to the Chapter 13 Confirmation Hearing, and the assigned Trustee may dismiss the case.

For more information visit http://www.bankrupcy-alternative.com/chapter-13.html or call us directly. Here is another bankruptcy chapter 13 article http://www.prlog.org/10779950-bankruptcy-houses-and-what-... for your reading enjoyment.

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