The credit union where I have my car loan (which was included on my
bankruptcy) is charging me late fees.  Is this legal?  When I called
my attorney, he said he "didn't know"!!!  Help!

Dear melanie68105-ga

Thank you for allowing me to answer your interesting question. Let me
preface by saying (see our disclaimer at the bottom of the page) that
we cannot provide legal advice. I am merely pointing out what is
published in the public domain:

According to these sources Chapter 13 bankruptcy prevents late fees
from accruing after the date your bankruptcy is filed and your debts
have been discharged:


?Filing a Chapter 13 or Chapter 7 is different from going through a
consumer debt counseling service because the bankruptcy law stops all
?late fees? and other fee-based charges added onto your debt by
unsecured creditors.?

WHO IS ELIGIBLE TO FILE A CHAPTER 13? 
http://www.bankruptcy2go.com/information/answer05.html

==========================================

Chapter 13 Debt Consolidation stops foreclosures, wage garnishments,
and the repossession of autos, trucks, RV's and motorcycles. It stops
late fees and any additional charges on all of your accounts as you
are making an attempt to pay the accounts, but within your means.

ROBERT REX MCRANEY, JR., ATTORNEY AT LAW  
http://www.realpagessites.com/robertrexmcraney/body2.html

==========================================

If you are going to do debt consolidation, credit counseling, or are
considering it, then do it under Chapter 13 of the United States
Bankruptcy Code. You set the plan approved by the Court, and make
payments pursuant to Federal Court Order that stops interest, stops
late fees and stops telephone calls. Get the leverage of a Federal
Court behind you.

THE JACKSON LAW FIRM
http://www.dallas-bankruptcy.com/consumer_credit_counseling.htm

==========================================

Chapter 13 Bankruptcy a/k/a "Wage Earner Bankruptcy" is about forcing
creditors to settle their debts with you pursuant to Federal law.
Creditors hate it. Chapter 13 forces creditors to settle their debt,
stop interest, and stop late penalties. This is Federal debt
consolidation.

THE JACKSON LAW FIRM
CHAPTER 13 DEBT CONSOLIDATION BANKRUPTCY
http://www.dallas-bankruptcy.com/13bankrutpcy.htm

==========================================

Q. Will Chapter 13 stop mortgage foreclosures, late charges and added
interest on past-due bills?
A. Generally speaking, yes. If your plan calls for it, the court may
approve a plan in which you are given an extension period to catch up
on back payments on your mortgage.

JEFFERY FREEDMAN, ATTORNEY AT LAW
http://www.jeffreyfreedman.com/faqbank.html#a15

==========================================


In short, it appears that a creditor CAN charge a late fee AFTER YOUR
BANKRUPTCY if you do not make your post-bankruptcy payments on time,
but in most cases he cannot charge you late fees on debts or
arrearages accrued PRIOR to your bankruptcy which have been claimed by
you under this protection and legally discharged by the court unless
this is something you agreed to in your bankruptcy.

If he does, this may constitute harassment. For that, someone at the
FINDLAW forum suggests this:

?The Bankruptcy Code prohibits "any act" to collect or enforce any
claims after someone files bankruptcy. Once the bankruptcy case
reaches its end and the discharge is entered, that order "discharges
the debtor of all debts...." If someone continues making efforts to
collect even after the discharge, then technically that creditor is in
contempt of court. It all depends on the amount of "harassment" that
the creditor is doing. If he simply complained at you or your wife
about losing some money, that is probably not something that the court
will do anything about. But if the harassment continues, if he sends
you bills or letters, if he makes phone calls, etc., then you could
take him back in to court and request an order that he is in contempt
for refusing to recognize the discharge. Doing this would require you
to file a motion to reopen your bankruptcy case, and then file a
motion to have him held in contempt. You could probably also file a
complaint against him in state court for harassment, emotional
distress, etc. But underlying all of this, you have to consider the
extent of his harassment and decide whether legal action is
worthwhile. If this was just one outburst, then it's probably not
worth going to court over.?

FINDLAW
http://boards.lp.findlaw.com/cgi-bin/WebX.fcgi?229@104.E4hObPFJeyZ%5E0@.ef0686b/224




I hope you find that my research exceeds your expectations. If you
have any questions about my research please post a clarification
request prior to rating the answer. Otherwise I welcome your rating
and your final comments and I look forward to working with you again
in the near future. Thank you for bringing your question to us.

Best regards;
Tutuzdad-ga ? Google Answers Researcher



INFORMATION SOURCES

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SEARCH TERMS USED:

BANKRUPTCY

BANKRUPTCY CODE

CHAPTER 13

LATE FEES

LATE CHARGES

RIGHTS

PROTECTION

DEBTOR

CREDITOR

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Request for Answer Clarification by melanie68105-ga on 28 Aug 2004 09:29 PDT

My bankruptcy is not discharged yet.  I am still paying my Trustee. 
According to what you sent, after discharge, they can charge late
fees, but what about BEFORE discharge of my bankruptcy?  And how would
they be able to charge late fees after discharge if the debt was paid
off during the bankruptcy?  I'm a little confused.

---

Clarification of Answer by tutuzdad-ga on 28 Aug 2004 13:07 PDT

From what I gather from the information I have posted, you cannot be
charged late fees on any debts claimed in your bankruptcy if that
debat accrued BEFORE yoru bankruptcy. In other words, if you owe a
creditor $1000 and this is one of the debts claimed in your
bankruptcy, that creditor cannot charge you late fees on that debt
once your bankruptcy if filed and you obtain your bakruptcy protection
number.

On the other hand, if you file bankruptcy and get your federal
bankruptcy protection number on January 1, 2004 and in your Chapter 13
agreement you agreed to make payments to on that $1000 debt on a
certain predetermined day of the month and you do not do it, you can
be charged late fees by the creditor for not making the payments as
agreed in your bankruptcy.

You cannot be charged compounded late fees on an existing debt claimed
in a bankruptcy but if you do not follow through with your agreement
you are, in effect, creating NEW debt outside of your bankruptcy for
which you have no protection. I normally tell people that their best
bet is to contact a lawyer, but since you have already done that, I'll
recommend you contact a "competent" lawyer and get a more informed
opinion than that of the one who "didn't know".

I hope this adds significantly to what I have already offered. I look
forward to your final comment and rating.

Regards;
tutuzdad-ga

tutuzdad-ga was EXTREMELY helpful in answering my questions.  Things
were explained better to me and I'm sure more time was spent
researching than what my $1,800.00 bankruptcy attorney did for me. 
Thanks again!  I will highly recommend this service!  I'm sorry I'm
not adding a tip.  It's only because of my financial situation.  If I
could, I would surely add a very large tip!