In a chapter 13 bankruptcy case, under Bankruptcy Rule 3002.1, post-petition mortgage fees, expenses or charges are allowed to be paid to mortgage lenders only if they file a notice within 180 days of when the particular expense is "incurred." In a recent case from the Southern District of Texas, a debtor objected because some of the fees were incurred before 180 days before the notice was filed. They were invoiced to the mortgage company within the 180 days, but they had been incurred before that.

U.S. Bankruptcy Judge Eduardo Rodriguez held that a mortgage "fee, expense or charge is incurred when there is first a legal obligation to pay the debt, not when an invoice is issued." In re Raygoza, (Bankr. S.D. Texas 2016).

Do you think this decision is fair to the mortgage companies? What if their service provider doesn't invoice them for 181 days? Should they just lose out? Please leave your comments or questions below.

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
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