QUESTION
Is it legal for the new company to come after me for a house on a bankruptcy?
Asked on Apr 05th, 2014 on Bankruptcy - California
More details to this question:
I went through a chapter 7 in 2010. The house was on the bankruptcy through BOA in 2013 BOA sold the mortgage to another company now they are coming after me for this discharged debt. Is this legal?
16 ANSWERS
William Rhymer
Usually not if you did not re-affirm the debt. You need to contact the bankruptcy lawyer that handled your case.
Answered on Apr 08th, 2014 at 8:24 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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No. This would be a discharge violation, unless you reaffirmed the debt. Visit with your attorney to resolve the issue.
Answered on Apr 08th, 2014 at 6:34 AM
The creditor certainly has the right to foreclose on the property that is financed by the mortgage, but cannot sue you to collect money.
Answered on Apr 07th, 2014 at 3:05 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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What do you mean by "they are coming after me"? Your personal obligation to pay on the loan has been discharged assuming you did not reaffirm the mortgage in your bankruptcy. However, the lien on the property survives the bankruptcy so unless loan payments are made the creditor can foreclose on the property and take back the collateral.
Answered on Apr 07th, 2014 at 1:17 PM
A mortgage is secured by your house, and a Chapter 7 does not extinguish the lien on the house although it eliminates your personal responsibility on the promissory note. If BOA sold the mortgage after you filed Chapter 7, they only sold the right to foreclose because they have no right to proceed against you personally. The new creditor may just be notifying you that they are foreclosing on the house. If not, just provide them with the discharge you obtained in your Chapter 7 and that should clear the air for everyone.
Answered on Apr 07th, 2014 at 1:17 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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The lien continues, although your personal liability does not. Note that you are also liable for taxes and assessments as long as you have title to the property.
Answered on Apr 07th, 2014 at 1:13 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, once a debt is discharged no one may attempt to collect it. The new holder may not be aware that you went though a Chapter 7, so notify them and tell them if they continue to harass you, you'll request sanctions from the bankruptcy court.
Answered on Apr 07th, 2014 at 1:09 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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If the debt was discharged in your bankruptcy they should not be coming after you for the balance, however as the home was secured they can foreclose. Speak with an attorney.
Answered on Apr 07th, 2014 at 1:00 PM
No. Contact your bankruptcy attorney for further discussion. The mortgage company is in violation of Federal Bankruptcy Laws (so there are remedies available to you here), and State Collection Laws (contact your State Attorney General's Office).
Answered on Apr 07th, 2014 at 12:08 PM
You may have an FDCPA claim against the new company or even a CCPA claim. It will depend upon how they are pursuing you. If they are only attempting to foreclose upon the property, they are allowed. If they are coming after you personally for bank execution, wage garnishment, etc. and you have not filed a reaffirmation agreement in the bankruptcy you will have a good case.
Answered on Apr 07th, 2014 at 12:08 PM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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They cannot come after you and it is a violation of the discharge. Write them a letter attach a copy of the discharge and tell them if they do anything (continue collection efforts, affect your credit) you will come after them for their illegal acts. If they continue call an attorney and sue them.
Answered on Apr 07th, 2014 at 11:43 AM
Insurance Law Attorney serving Pasadena, CA
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KJM Law Partners
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How are they coming after you? If they are simply sending you statements regarding the debt (i.e., the lien on the property) that is allowed. If they are suing you for the amount owed on the mortgage (as opposed to threatening to foreclose on the property), than that is a violation of the discharge order. The bankruptcy only discharged your personal liability for the mortgage, not the lien on the property.
Answered on Apr 07th, 2014 at 11:43 AM
Litigation Attorney serving San Antonio, TX
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Graves Law Firm
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Probably so, because generally you can't discharge a mortgage debt against a house and keep the house. Check with your bankruptcy lawyer.
Answered on Apr 07th, 2014 at 11:43 AM
2 Awards
They should only be coming after the secured interest in the property.
Answered on Apr 07th, 2014 at 11:42 AM
2 Awards
No, it is not legal. If they are attempting to collect on the debt, make sure that you did not sign a reaffirmation agreement while in bankruptcy. If not, I suggest sending the new company a letter advising them of your filing and providing them with a copy of the discharge papers. Please note that if you are still living in the home the company is entitled to advise you of its intentions to foreclose and secure its collateral.
Answered on Apr 07th, 2014 at 11:39 AM
If you paid the mortgage and kept the property and then later defaulted, they can come after you. If the matter was always in default, no, they cannot.
Answered on Apr 07th, 2014 at 11:33 AM