Even after a Bankruptcy Discharge, some mortgage lenders stop sending mortgage statements even though the lien survives bankruptcy discharge.

Bankruptcy law prohibits the collection of a debt upon the date of bankruptcy filing because "automatic stay" takes into effect.  Automatic Stay prevents creditors from collection activities like calling or writing you in demand of payment of a debt.  When you receive a Bankruptcy Discharge at the end of your Chapter 7 or 13 Bankruptcy case, your creditors are prohibited from further collection activities.

Nonetheless, some mortgage lenders stop sending statements even though their lien survives bankruptcy discharge.  A bankruptcy discharge protects the debtor against personal liability like wage garnishment but the lender can still foreclose on or repossess the collateral if the debtor defaulted in payments.

This can pose a problem if homeowners are unaware of their mortgage arrears because the mortgage lender can still foreclose on the house if the homeowner is delinquent.

For more information about lien and automatic stay, call Muoi Chea, experienced Bankruptcy Attorney with Offices in Sacramento, Stockton, Fairfield, CA.  She has helped residents from Vallejo to Lodi and Modesto, from Tracy to Roseville and Rocklin, and from Woodland and Davis to Yuba and Sutter, California eliminate and restructure through debts.