QUESTION
What can be done if a bank keeps sending me letters even if my bankruptcy is already discharge?
Asked on Apr 15th, 2013 on Bankruptcy - Michigan
More details to this question:
A bank keeps sending me letters almost every month telling me that I owe them for a home loan that was discharged after my bankruptcy. The letter also says that it is not a demand for payment. They have also purchased home owners insurance and sent me a packet saying that I have to pay for it. My bankruptcy was discharged in 2010. I notified the bank four times and gave them all of the bankruptcy details but they continue to send me letters. I have told them to stop sending me letters but nothing has changed since I informed them of the discharge in 2010.
9 ANSWERS
Was the loan and the bank notified and listed as one of the creditors in your schedules filed with the court? Also did you surrender the property in bankruptcy or if foreclosed before filing bankruptcy were they listed as creditors. If so then that debt is discharged however if not then your name might still be on the grant deed of the house and if there has been no foreclosure then that is why they still are holding you liable. You must talk to someone in the legal department of the bank.
Answered on Apr 17th, 2013 at 10:17 PM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
When you received your discharge this means that you no longer have personal liability for your real estate loans. However, the lender retains its security interest. In effect, this means you must continue to pay the mortgage or else the lender will foreclose. The statements they are sending are letting you know what payments are due. If you don't want to make the payments you don't have to do so you can give up your house.
Answered on Apr 17th, 2013 at 9:44 PM
Bankruptcy Attorney serving Alpena, MI
at
Carl C. Silver Attorney at Law
Update Your Profile
Send them one more letter telling them of your bankruptcy with copies of your bankruptcy papers listing them as a creditor and the discharge. Tell them if they do not stop harassing you or you will reopen your case and file a motion to have them held in contempt for violating the stay injunction of the Bankruptcy Code and that you will ask that they sanctioned and that you be awarded all costs and attorney fees.
Answered on Apr 17th, 2013 at 8:50 PM
Although you could take legal action against the bank for violating the bankruptcy discharge, the fact that the letter says the bank is not demanding payment makes me wonder what it is that the bank wants by sending you this communication. Unfortunately, unless you can prove that you have sustained money damages by receiving these letters, it will be hard to find a lawyer to take your case.
Answered on Apr 17th, 2013 at 12:35 PM
Bankruptcy Attorney serving Plantation, FL
at
Moffa & Breuer, PLLC
Update Your Profile
While you don?t owe the bank any money (assuming the debt was properly listed and was indeed discharged), the bank still HAS A LIEN on the real property and can add the cost of the insurance to the lien amount. It sounds like they are just sending you information regarding the amount of the lien they have on the property.
Answered on Apr 17th, 2013 at 12:32 PM
Bankruptcy Attorney serving Houston, TX
at
Pamela L. Stewart, Attorney at Law
Update Your Profile
It appears from your question that you intended to keep your home after your bankruptcy was over. If that is true, you don't get to keep your home without paying for it. You must also maintain insurance on the property and pay any property taxes. Your personal liability was extinguished in the bankruptcy but the company still has a security interest in your home. They can foreclose on the property if you don't make the payments.
Answered on Apr 17th, 2013 at 12:32 PM
Estate Planning Attorney serving Wilmington, DE
at
Reger Rizzo & Darnall, LLP
Update Your Profile
I would give letters to your attorney and they can contact them.
Answered on Apr 17th, 2013 at 12:31 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
Please give this information to your bankruptcy counsel, as there may be a violation of the injunction of the automatic stay.
Answered on Apr 17th, 2013 at 12:31 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Engage an attorney to communicate with the bank, apparently they cannot hear you.
Answered on Apr 17th, 2013 at 12:31 PM