The moment a bankruptcy case is filed, the automatic stay goes into effect. This is a powerful protection that stops all collection activity. Many lenders view online account access as a potential risk because portals naturally show balances, due dates, payment reminders, and other information that could be interpreted as a request for payment. Even an automatically generated message like “Your payment is due” or “Your account is past due” can be considered a violation of the stay. Rather than take the chance, lenders often choose the safest route, which is to temporarily shut down the borrower’s ability to log in.
Another reason access is removed is because online portals are built for billing, not for handling bankruptcy compliance. These systems automatically display figures that include pre-petition balances and late fees. Showing those numbers during bankruptcy can create confusion or lead to the appearance that the lender is trying to collect a debt that is legally frozen. Rather than redesign their systems around bankruptcy law, most lenders simply restrict online access until the bankruptcy process is complete.
Although losing access can feel alarming, it does not mean your loan has been closed, your property is at risk, or the lender is taking action against you. The account still exists, and the loan is still active. You are allowed to keep your home or vehicle as long as you continue making the payments. The only change is the method of payment. Most borrowers simply mail in payments, use their bank’s bill-pay service, or call the lender directly during the period when online access is disabled.
Access usually returns at some point, but the timing varies depending on the lender. Some reactivate the account after a reaffirmation agreement is approved. Others wait until the bankruptcy case is fully closed. A few lenders never fully restore the portal, but still allow you to continue paying and keeping the property without issue. None of these internal practices change your legal rights or your ability to keep the home or car as long as payments remain current.
In the end, lenders shut down online accounts during bankruptcy to protect both themselves and you. Restricting access helps them avoid accidental stay violations and prevents confusion about balances that are no longer collectible. It may feel inconvenient, but it is simply a temporary administrative measure, not a sign of trouble. When the time is right, or when you are ready, reach out to Minnesota’s MOST Kind and Helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so happy you did.