QUESTION
How can a bank seek money if the loan was discharged?
Asked on Mar 10th, 2013 on Bankruptcy - New Jersey
More details to this question:
Equity Loan discharged in bankruptcy. Received letter from bank stating that if they do not receive X number of $ by a certain date, the loan will be in default.
9 ANSWERS
Construction Litigation Attorney serving Mission Viejo, CA
at
Law Office of Christian F. Paul
Update Your Profile
This is a violation of the bankruptcy stay. Since you have received a discharge, notify the bank of the discharge and demand that they leave you alone. Just send a copy of the notice of discharge along with your demand letter, and I bet you won't hear from that bank again. Good luck.
Answered on Mar 17th, 2013 at 10:48 PM
Richard hirsh
That letter violates section 524 of the bankruptcy code and you can possibly recover sanctions against the bank.
Answered on Mar 12th, 2013 at 1:47 PM
2 Awards
Equity loan is tied to your home. If you still own the home, the bank has the right to foreclose.
Answered on Mar 12th, 2013 at 1:46 PM
Estate Planning Attorney serving Wilmington, DE
at
Reger Rizzo & Darnall, LLP
Update Your Profile
If discharged in bankruptcy they cannot pursue you for loan.
Answered on Mar 12th, 2013 at 1:46 PM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
Debts are discharged in the bankruptcy, so long as the court does not enter an order otherwise. But, that does not remove the debt from collateral. If you are talking about a loan on something, like a home or car, the only way you get to keep the item is to either pay for it or negotiate a settlement with the secured lender.
Answered on Mar 11th, 2013 at 4:49 PM
Although you don't owe the money, the debt is connected to your ability to own the house. Don't pay & the creditor has the right to foreclose. That's what an equity loan is - a 2nd mortgage loan & mortgages always come with the right to foreclose.
Answered on Mar 11th, 2013 at 2:17 PM
Bankruptcy Attorney serving Alpena, MI
at
Carl C. Silver Attorney at Law
Update Your Profile
Not unusual for bank to ignore discharge and let their computer generate such a demand letter. Send their letter back to them eith copy of your 341 notice and copies of schedules D and F and your discharge.
Answered on Mar 11th, 2013 at 2:17 PM
William A. Siebert
The loan was discharged, but your right to stay on the property went with it. You can "reaffirm" the mortgage debt and stay in your house.? The lawyer who handled your bankruptcy can explain further.
Answered on Mar 11th, 2013 at 2:17 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
While the personal obligation on the Loan may have been discharged, the Company may still exercise rights against the property. So while they can not get a judgment against you, they can foreclose on the property itself.
Answered on Mar 11th, 2013 at 2:16 PM