Is it legal for the new company to come after me for a house on a bankruptcy? 27 Answers as of April 08, 2014

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?

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EDWARD P RUSSELL | EDWARD P RUSSELL
As long as you did not sign a reaffirmation agreement, agreeing to keep the debt, that debt would have been discharged in the 2010 bankruptcy.
Answer Applies to: Minnesota
Replied: 4/8/2014
Stephens Gourley & Bywater | David A. Stephens
Not if you were discharged on the loan. They can still seek to foreclose.
Answer Applies to: Nevada
Replied: 4/8/2014
Rhymer Law Firm
Rhymer Law Firm | William Rhymer
Usually not if you did not re-affirm the debt. You need to contact the bankruptcy lawyer that handled your case.
Answer Applies to: Georgia
Replied: 4/8/2014
Idaho Bankruptcy Law | Paul Ross
No. This would be a discharge violation, unless you reaffirmed the debt. Visit with your attorney to resolve the issue.
Answer Applies to: Idaho
Replied: 4/8/2014
Law Offices of Linda Rose Fessler | Linda Fessler
No. You can report them for violating the bankruptcy law as long as you did not reaffirm the debt. However, if you go to sell the house they are allowed to collect their money that was secured by the deed of trust.
Answer Applies to: California
Replied: 4/8/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    It depends on what you did with the mortgage in your bankruptcy and the nature of the loan. If the mortgage was reaffirmed and your state allows personal liability for mortgage debts beyond the value of the property then you may be liable for the debt beyond foreclosure and sale of the property. Typically, mortgage loans that were solely for the purchase of real property are typically secured only by the property and not personally. If you took cash from the mortgage then you may be responsible for that amount personally (debt consolidation). Each state treats mortgages differently so you need to consult an attorney in your jurisdiction. If you did not reaffirm the mortgage debt in your bankruptcy then you may be able to pursue the creditor for violation of the bankruptcy stay/discharge unless their pursuant is only for foreclosure of the mortgage debt for non-payment. The creditor has a right to foreclose on the property for non-payment but not against you personally under these circumstances.
    Answer Applies to: Indiana
    Replied: 4/7/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    The creditor certainly has the right to foreclose on the property that is financed by the mortgage, but cannot sue you to collect money.
    Answer Applies to: Nevada
    Replied: 4/7/2014
    The Law Office of M Grater LLC
    The Law Office of M Grater LLC | Mark O. Grater
    The original underlying debt is discharged. So if it is the same debt that was assigned to the new company, it is discharged.
    Answer Applies to: Connecticut
    Replied: 4/7/2014
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    When you say "coming after me", what do you mean? Do you mean they are seeking to foreclose on their collateral, or that they are suing you for a deficiency judgment after sale of your property? The former is perfectly appropriate, while the latter is not.
    Answer Applies to: California
    Replied: 4/8/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    See if they are foreclosing to get title or actually trying to collect from you personally.
    Answer Applies to: South Carolina
    Replied: 4/7/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    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.
    Answer Applies to: Oregon
    Replied: 4/7/2014
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    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.
    Answer Applies to: California
    Replied: 4/7/2014
    Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
    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.
    Answer Applies to: Illinois
    Replied: 4/7/2014
    Ronald K. Nims LLC | Ronald K. Nims
    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.
    Answer Applies to: Ohio
    Replied: 4/7/2014
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    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.
    Answer Applies to: Michigan
    Replied: 4/7/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Not if you did not reaffirm the debt. Send them a copy of your discharge letter along with the schedule showing the mortgage. They probably lost you between BOA and the new company as being discharged.
    Answer Applies to: Michigan
    Replied: 4/7/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    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).
    Answer Applies to: Colorado
    Replied: 4/7/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    No, you can sue them for damages.
    Answer Applies to: New York
    Replied: 4/7/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The debt is secured by the house. You do not have to make the payments if you do not want to keep the house. If you want to keep it, you have to make the payments or they will foreclose.
    Answer Applies to: California
    Replied: 4/7/2014
    Paul Stuber, Attorney at Law
    Paul Stuber, Attorney at Law | Paul Stuber
    They should only be coming after the secured interest in the property.
    Answer Applies to: Colorado
    Replied: 4/7/2014
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    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.
    Answer Applies to: Connecticut
    Replied: 4/7/2014
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    No please contact an attorney.
    Answer Applies to: Florida
    Replied: 4/7/2014
    Graves Law Firm
    Graves Law Firm | Steve Graves
    Probably so, because generally you can't discharge a mortgage debt against a house and keep the house. Check with your bankruptcy lawyer.
    Answer Applies to: Texas
    Replied: 4/7/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    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.
    Answer Applies to: Nevada
    Replied: 4/7/2014
    Cameron Totten | Cameron Totten
    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.
    Answer Applies to: California
    Replied: 4/7/2014
    James T. Weiner & Associates, P.C.
    James T. Weiner & Associates, P.C. | James T. Weiner
    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.
    Answer Applies to: Michigan
    Replied: 4/7/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    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.
    Answer Applies to: California
    Replied: 4/7/2014
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