QUESTION
Can we be sued after our bankruptcy discharge? How?
Asked on May 25th, 2015 on Bankruptcy - Illinois
More details to this question:
Can our second lender sue us after a Chapter 7 discharge that included our first and second mortgage loans? The first property was foreclosed on and the other has been sold. Does the 4 year statute of limitations apply?
8 ANSWERS
That debt should have been discharged in the BK. If you are being threatened with a lawsuit by the 2nd mortgage lien holder, pay an experienced BK lawyer to review the matter with you. For example, I have a two hour minimum, at $250 an hour, or $500. I would review your BK file, discuss your options, and while you are still in my office, prepare a letter to the 2nd lien holder. You will have to decide if the cost is justified. Good luck what ever you decide.
Answered on May 28th, 2015 at 4:44 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If the property was already foreclosed and you didn't reaffirm that debt, you can't be sued on any debt that existed at the time you filed and listed in your bankruptcy. The statute of limitations isn't applicable. Suing you would be a violation of the discharge injunction.
Answered on May 27th, 2015 at 4:34 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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If a creditor whose debt was discharged in a bankruptcy case sues you, that would violate the discharge injunction imposed by Section 524 of the Bankruptcy Code (which is Title 11 of the United States Code). The effect of the discharge injunction is explained briefly in the "Discharge of Debtor" itself that the Court sends out. A Bankruptcy Court can sanction such violation and impose actual and punitive damages against the creditor for a lawsuit. To answer your specific question, however, more specific information is needed.
Answered on May 26th, 2015 at 3:54 PM
If your chapter 7 bankruptcy ended with a discharge, no creditor can sue you to collect money. The most any creditor can do is sue to foreclose or repo property. As you indicate the property was already foreclosed by the 1st mortgage company, the right of the 2nd mortgage company to foreclose has disappeared, so they have no remedies against anyone, including you.
Answered on May 26th, 2015 at 12:12 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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I don't know about a four year limitations period in this context, but on these facts your BR discharge should protect you from a lawsuit.
Answered on May 25th, 2015 at 11:41 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Need details, but I would think not.
Answered on May 25th, 2015 at 11:32 PM
If you got a discharge in your bankruptcy and they were included in your bankruptcy they cannot now sue you.
Answered on May 25th, 2015 at 5:46 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Without more facts, it's hard to tell exactly what you are being sued for. If you owned another property before filing bankruptcy, it is possible that they recorded a lien on that new property. You'll have to bring your documents to an experienced attorney for review.
Answered on May 25th, 2015 at 3:56 PM