Can my house be foreclosed on after I file bankruptcy? 3 Answers as of July 10, 2012I filed a chapter 7 bankruptcy last year that included my mortgage. It is still not finished the foreclosure process. I am getting court documents weekly that I don't understand and I can't get any response from my bankruptcy attorney. Two of them that worry me are, a court date set for July 11. It says it is for a "summary judgement including a hearing to tax attorney's fees and costs. " Am I supposed to attend? Also, they are listing all kinds of "reasonable" attorneys fees. Am I responsible for these even though my mortgage was included in my bankruptcy? Bank in February I had recieved a "notice of voluntary dismissal of defendent" so I thought all this was over with....
Burton Green, Attorney | Burton Green
If you included this property and mortgage lender in the bankruptcy and you did not "reaffirm" the mortgage debt, the loan debt would have been discharged as a part of the discharge issued by the bankruptcy court. However, in order to get title to the property the mortgage lender still has to go through a normal foreclosure case. The papers you describe are normal things in a foreclosure lawsuit. You do not have attend the hearing. When the mortgage lender gets its final judgment it will include a provision that it does not include a money judgment against you (because that debt was discharged). Those extra charges and attorney fees are added into the judgment in case someone other than the lender buys the property at the clerk's sale. You do not have to worry about anything. You will get a copy of the final judgment when it is issued. Read the judgment carefully to verify that it does not include a money judgment against you. If it does it is a violation of the bankruptcy discharge and you should call it to the attention of the lender's attorney. If the attorney does not correct the judgment, you will have to file a motion for sanctions in the bankruptcy court against the mortgage lender. But I don't really think that will happen.
Answer Applies to: Florida
R. Jason de Groot, P.A | R. Jason de Groot
Without knowing the particular facts and circumstances of this case, it is difficult to give you a complete answer. If the bank got permission from the bankruptcy court to proceed with the foreclosure, that is what is probably happening. If you did nto reaffirm the mortgage, the bank can only get the property back and cannot get a money judgment against you or a deficiency judgment. The hearing on the motion for summary judgment is standard and the reason you should go to the hearing is to make sure the judge knows that you have filed a bankruptcy and that a money judgment cannot be entered against you as the debt has been discharged.
Answer Applies to: Florida