QUESTION
What can we do if we are being sued for a foreclosed house after bankruptcy?
Asked on Sep 12th, 2011 on Bankruptcy - California
More details to this question:
What can I do after bankruptcy? I am being sued for foreclosure. We give up the house in the bankruptcy, because we could not afford the house. There were too many bills and too much mortgage and too many repairs. We just couldn't afford it.
11 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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After what kind of bankruptcy?
Answered on Jun 25th, 2013 at 12:47 AM
You owe no money on the house after the bankruptcy. The lender has to foreclose to get the full rights of ownership away from you. They cannot demand your money after the bankruptcy, they can only demand your house.
Answered on Jun 19th, 2013 at 9:26 PM
If you received a discharge then you are not liable for the debt.
Answered on Sep 14th, 2011 at 12:30 PM
Consumer Bankruptcy Attorney serving Worcester, MA
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Law Offices of James Wingfield
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If I understand you correctly, you have already discharged your personal obligations under your home mortgage, and there is a pending foreclosure. If you want to stop the foreclosure, then your options are limited. Depending on how long ago you filed your bankruptcy case and when you received your discharge, you may be able to file a Chapter 13 case for the limited purpose of stopping the foreclosure. It is likely you will not be eligible for another discharge, but you may be able to take advantage of the automatic stay and the provisions of the Chapter 13 Plan to catch up on your mortgage payments to stop the foreclosure altogether. You can also talk with your bank about a modification. Depending on the value of the house, they may be more open to modifying your mortgage in a situation where they will not be able to collect a deficiency from you (due to the prior bankruptcy discharge).
Answered on Sep 14th, 2011 at 12:04 PM
Daniel James Wilson
Excellent question! Your bankruptcy discharged your debt in connection with the house. However, the lender retained a security interest in the house. That means if you don't pay the mortgage the lender can foreclose. You don't give enough details for me to know exactly what your situation is. If you are not living in the house you don't need to worry about the foreclosure. If the house sells for less than what you owe you will not be responsible for any deficiency. If you are still living in the house you can stay there until the foreclosure sale takes place. Ask the lender for "cash for keys." The going rate is $1000$3000 to move after the foreclosure sale and not force new owner to evict you. The banks don't want any more bad publicity for evicting families after foreclosure. One final note, the foreclosure process is not an attempt to collect the debt. It is the due process which must be followed for the lender to get good title to the house so they can resell it.
Answered on Sep 14th, 2011 at 8:16 AM
If the mortgage for the home was included in the bankruptcy and you did not reaffirm that debt then you cannot be sued because the debt was discharged through the bankruptcy.
Answered on Sep 14th, 2011 at 8:16 AM
Spencer Hale
Well it depends on who is suing you. I would need more information, but potentially, you could have a claim against this creditor for a violation of the Discharge. You should talk to an attorney.
Answered on Sep 14th, 2011 at 7:52 AM
Glen Edward Ashman
A bankruptcy does not change a house deed. As I am sure your lawyer explained, a lender still has to foreclose to get the property back, either during or after the bankruptcy.
Answered on Sep 14th, 2011 at 7:51 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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After filing bankruptcy you cannot be sued for your mortgage. However, your property will be foreclosed pursuant to a non-judicial trustee's sale.
Answered on Sep 14th, 2011 at 7:30 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Let your lawyer know. If not, call the foreclosing lawyer and send a copy of your discharge. They should dismiss. If they don't, go to court and show the bankruptcy documents. It should be dismissed then. And then find a bankruptcy lawyer to sue them for violation of the discharge.
Answered on Sep 14th, 2011 at 7:00 AM
judith runyon
The debt should have been listed in your bankruptcy and therefore the debt was discharged in your Chapter 7 and the creditor cannot sue you. If you did not give them notice of the bankruptcy that is a different story.
Answered on Sep 13th, 2011 at 3:52 PM