Can we be sued after our bankruptcy discharge? How? 13 Answers as of May 28, 2015

Can our second lender sue us after a Chapter 7 discharge that included our first and second mortgage loans? The first property was foreclosed on and the other has been sold. Does the 4 year statute of limitations apply?

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GARCIA & GONZALES, P.C. | Richard N. Gonzales
That debt should have been discharged in the BK. If you are being threatened with a lawsuit by the 2nd mortgage lien holder, pay an experienced BK lawyer to review the matter with you. For example, I have a two hour minimum, at $250 an hour, or $500. I would review your BK file, discuss your options, and while you are still in my office, prepare a letter to the 2nd lien holder. You will have to decide if the cost is justified. Good luck what ever you decide.
Answer Applies to: Colorado
Replied: 5/28/2015
Ronald K. Nims LLC | Ronald K. Nims
If the property was already foreclosed and you didn't reaffirm that debt, you can't be sued on any debt that existed at the time you filed and listed in your bankruptcy. The statute of limitations isn't applicable. Suing you would be a violation of the discharge injunction.
Answer Applies to: Ohio
Replied: 5/27/2015
Stephens Gourley & Bywater | David A. Stephens
The second can sue you for foreclosure of the property, but not to collect the debt, assuming the second was discharged.
Answer Applies to: Nevada
Replied: 5/27/2015
The Orantes Law Firm
The Orantes Law Firm | Giovanni Orantes
If a creditor whose debt was discharged in a bankruptcy case sues you, that would violate the discharge injunction imposed by Section 524 of the Bankruptcy Code (which is Title 11 of the United States Code). The effect of the discharge injunction is explained briefly in the "Discharge of Debtor" itself that the Court sends out. A Bankruptcy Court can sanction such violation and impose actual and punitive damages against the creditor for a lawsuit. To answer your specific question, however, more specific information is needed.
Answer Applies to: California
Replied: 5/26/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
If your chapter 7 bankruptcy ended with a discharge, no creditor can sue you to collect money. The most any creditor can do is sue to foreclose or repo property. As you indicate the property was already foreclosed by the 1st mortgage company, the right of the 2nd mortgage company to foreclose has disappeared, so they have no remedies against anyone, including you.
Answer Applies to: Nevada
Replied: 5/26/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You cannot be sued by a creditor that was discharged in bankruptcy.
    Answer Applies to: New York
    Replied: 5/26/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    I don't know about a four year limitations period in this context, but on these facts your BR discharge should protect you from a lawsuit.
    Answer Applies to: Wisconsin
    Replied: 5/25/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Need details, but I would think not.
    Answer Applies to: Michigan
    Replied: 5/25/2015
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    You no longer have any personal liability for all debts which were included in a Chapter 7 discharge. Therefore no lender nor any person who purchased the discharged debt from the lender can sue you. The statute of limitations is irrelevant as the debt was discharged. However, sometimes a lender will not indicate in the file that you filed bankruptcy when the loan was sold. You should notify the lender in writing of the bankruptcy discharge as you have rights against the lender if they bring suit after knowing of the bankruptcy discharge.
    Answer Applies to: California
    Replied: 5/25/2015
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    If you got a discharge in your bankruptcy and they were included in your bankruptcy they cannot now sue you.
    Answer Applies to: New York
    Replied: 5/25/2015
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    They can't sue you.
    Answer Applies to: California
    Replied: 5/25/2015
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    Without more facts, it's hard to tell exactly what you are being sued for. If you owned another property before filing bankruptcy, it is possible that they recorded a lien on that new property. You'll have to bring your documents to an experienced attorney for review.
    Answer Applies to: Illinois
    Replied: 5/25/2015
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    Yes. Anyone can sue you. It doesn't mean they'll win. You need to respond to any lawsuit(s) with the appropriate documents filed in the court to make sure your defenses are asserted. (If a statute of limitations has run is determined by the facts.) If you didn't reaffirm the mortgages which were included in your bankruptcy, then there is no personal liability. If the property was sold there is nothing the mortgage lenders can do. (However, be certain NOT to ignore any court documents. If you fail to respond, a default judgment could be taken which may be difficult or impossible to completely unwind.) You can try writing a letter to the lender or better yet have an attorney contact the company. If there was no reaffirmation then there is a violation of the Federal Discharge Orders here. You don't say why you're asking this question. If someone is calling you about an old discharged or stale debt it's best not to speak to them. There is an entire industry devoted to collections. Google "zombie debt" and "bad paper" for a lot more information.
    Answer Applies to: California
    Replied: 5/25/2015
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