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Can a Lender Add Fees to Your Loan Balance After a Bankruptcy

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  • 08-09-2016, 09:52 PM
    Telecaster2005
    Can a Lender Add Fees to Your Loan Balance After a Bankruptcy
    My question involves bankruptcy in the state of: Texas. Several months we filed chapter 13. Our mortgage and car payment were listed as "secured" in our plan and are paid outside the plan. The car is financed through a federal credit union. About three weeks after our 341 meeting and a month before our plan was confirmed we noticed the credit union had added $360.00 in fees to our loan balance without notifying us. I contacted the credit union about the fees and they stated the fees were for costs they incurred in association with us filing bankruptcy. Now, this week I noticed they added another $290.00 in fees. The credit union had added around $800.00 (for legal fees) to the car loan balance when they filed their claim. My question is: was the credit union within their rights to add the $650.00 charges to the loan balance without notifying us and before the trustee sent out the Trustee Recommendation Concerning Claims (TRCC)? The credit union is the only creditor that added any additional fees to their claim. Because the fees were added early in the loan we will be paying interest on the fees throughout the life of the loan.
  • 08-09-2016, 11:46 PM
    adjusterjack
    Re: Credit Union Added Fees to Loan
    This has been happening for a while and you haven't asked your bankruptcy attorney?
  • 08-10-2016, 06:54 AM
    Telecaster2005
    Re: Credit Union Added Fees to Loan
    I have contacted my attorney's office several times on this issue, however, he hasn't returned my phone calls or answered my emails. It is difficult to meet with him due to my work schedule and the fact he is always in court. I was hoping someone on the forum would know if the actions of the credit union are in line with bankruptcy laws.
  • 08-10-2016, 08:23 AM
    Mr. Knowitall
    Re: Can a Lender Add Legal Fees to Your Loan Balance After a Bankruptcy
    Quote:

    Quoting Telecaster2005
    View Post
    Our mortgage and car payment were listed as "secured" in our plan and are paid outside the plan.

    Technically speaking the bankruptcy does not affect the terms of your contract with the lender -- it potentially affects their right to fully enforce the contract by providing for the full or partial discharge of the debt you owe under the contract.

    By describing the loans as "paid outside the plan", it seems reasonable to infer that you mean that you opted to exclude the loans from your Chapter 13 plan. That would mean that you don't get the benefit of having the payments restructured under the plan, or for a potential partial discharge of a portion of your excluded debt if you complete the plan.
  • 08-10-2016, 09:14 AM
    Telecaster2005
    Re: Can a Lender Add Legal Fees to Your Loan Balance After a Bankruptcy
    I understand what you are stating. My issue is whether the credit union had a right to add legal fees to my loan balance without approval of the court. If I had not checked my payment transactions for the loan by using the online access to my account I would have never known the fees were added to the loan balance. The whole thing seems "sneaky" to me. I was under the impression a creditor would need to have their claim approved by the trustee before assessing fees associated with us filing bankruptcy. The TRCC was not sent out until six months after our 341 meeting.
  • 08-10-2016, 10:11 AM
    jk
    Re: Can a Lender Add Legal Fees to Your Loan Balance After a Bankruptcy
    You will need to read your loan contract with the lender.
  • 08-10-2016, 04:25 PM
    Telecaster2005
    Re: Can a Lender Add Legal Fees to Your Loan Balance After a Bankruptcy
    I read the loan contract and it states that associated attorneys fees and court costs may be charged if the car is repossessed. It does not state fees will be assessed if debtor files bankruptcy.
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