Will the mortgage company sue me for the difference after bankruptcy? 4 Answers as of October 08, 2010I gave up my home in Chapter 7 bankruptcy. Now my home is being foreclosed. The sale is for November 25th. My discharge should come before then. If there is a deficiency when they sell the home can the mortgage company sue me?
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They can, but the would be violating either section 362 of the bankruptcy code (the automatic stay) or section 524 of the bankruptcy code (post discharge injunction) depending on when they filed their suit. Either way, you would be able to recover damages from them for doing so.
Answer Applies to: California