Help!!!! Need Some Advice

[Jchx3]

My wife and I just recieved our BK Discharge. However although we are short selling our home the second lien lender(citi) is coming after me. We took out the second in 2006 and at that time my income was really good. See I was in the mortgage industry and since that market crashed, so did my income. Now because of the income on my 2008 Chapter 7 Citi is claiming Fraud and coming after my wife and I. Our BK attorney says he is too busy to handle this. What can we do???


Thanks

[BK2008]

Duplicate post.

[Jchx3]

I put the post in the forclosure section also. My mistake. Just really need to get some help with this

[BK2008]

See my post on your other post.

[Help!]

Was the second mortgage included in your BK? If so, Citi can scream fraud all they want - the only way you would be held responsible for that loan is if they reopen your BK case and file a complaint (objection to discharge). If it was not included in your BK and you are really up a creek, you could turn around and file 13 on it, worst case scenario.

[Jchx3]

It was included in the BK and they did file an objection to discharge.

[AngelinaCat]

It was included in the BK and they did file an objection to discharge.

What was the outcome of that? I wouldn't think you would be discharged if that wasn't resolved.

[Jchx3]

From what I understand I was allowed to discharge it. Infact we recieved our letter about it over a month ago

[Frogge]

OK, I know you have this post on 2 different boards but I wanted to respond to this thread.. to clarify: are you saying that Citi filed an objection to discharge the 2nd mortgage in your BK, but the judge ruled it was dischargable and you have a letter stating this?

[Jchx3]

no. Citi is objecting to be included in the BK. We recived a discharged of debtiors for everything else. Sorry for being confusing but this is what we recieved in our mail

[justplaintired]

I don't get this. They objected to being included? So what happens then? How can your BK be granted if it doesn't include who you filed on? What's the point in BK? What did your discharge papers say exactly regarding Citi? You didn't reaffirm, they weren't included and yet you're discharged. What Chapter are we talking about, I am assuming 7. Totally confused on this one. Mostly because if they claimed fraud what was their bases for this? What kind of fraud did you supposedly commit? If you got this second mortgage in '06 and paid on it, how did you commit fraud. I don't see how citi can even have a case for fraud. Totally confused and sounds to me like you might have the worse attorney in the world for him to say he doesn't have time???!!! What the heck kind of attorney let's a client get into this mess without advising them better. You really need to report this one to your state's bar association.

[Jchx3]

To answer your question. I was a mortgage broker in 06 and my income was 10k+ per month. So on the loan application we included that. When we filed the BK my income declined and he listed my income as 5300. Citi is claim that we committed fraud on the loan application.

Thanks

[AngelinaCat]

It is up to Citi to prove that. Any creditor that files an objection has the burden of proof put on him or her. Have you kept any of your paystubs showing the decline in income? The income tax statements should reflect that as well.

[PoorGrammyinBK7]

Your C7 lawyer should at least help you find someone who can fight this for you if he is "too busy". If this will be an adversary proceding, they usually do NOT include this in their charge for a Ch 7.

The burden is on the creditor to prove their objection. I think it would be hard to do but I also think you need a lawyer to represent you if it goes to court.

Income changes. Unless you outright lied about your income when you applied, there is no fraud here.

I am not sure, but I have also heard that the creditor who sues about something like this can be made to pay YOUR legal fees. But I am not a lawyer - so you need to ask one!

This is assuming you did not reaffirm the loan. If you did, you are out of luck.

[Frogge]

Well, if you can document the change to your income from 2006 to 2008, which I assume you can because you got a bk discharge, then they have no case for fraud. You simply don't make what you did in 2006.

Secondly, if you approached your attorney at the beginning with the intention to keep your house, then from what I've been reading here, he would have advised you to a) walk away from it if you owe way more than it's worth, or b) reaffirm the mortgages, or c) don't reaffirm and keep paying.

Are you actually Discharged ?? I don't see how that's possible with Citi holding an objection. This HAS to be dealt with by your attorney, there's no other way. I feel like I'm missing something.