Now that I’ve filed bankruptcy, why won’t my bank send me statements or let me pay online?

It’s obnoxious.  Even if you are current on your payments, and have even filed a Statement of Intention that you want to keep and reaffirm the mortgage, many of your banks will send out a letter advising that:

Due to the Debtor’s recent bankruptcy filing, xxxxxx is taking the following actions:

Online or paper statements regarding the account will no longer be produced or mailed;

If the account is a line of credit, then it will be restricted as to additional advances, closed, or both; and

If the Debtor’s payment was previously made by an automatic payment deduction from a deposit account, this transaction has now been more bank statements

As to why they do this, it’s fairly simple.  The bank does not want to be accused of violating bankruptcy law (the automatic stay) by attempting to make any collection efforts to make you pay the mortgage payment.

If this happens to you, contact the bank and ask them to send an attorney authorization letter to your bankruptcy attorney so that he/she can sign it.  This will allow them to start taking auto payments again, talk to you on the phone, and mail you out paper statements.

Now if they are not accepting payments, remember that this really doesn’t let you off the hook for those missed payments.  Keep the payment in reserve until you have gotten the authorization, and then catch up on your payments as soon as you can.