After discharge...creditors at it again, can I sue?

[jtindisguise]

Greetings all,

I made it through my chapter 7 and what a relief. No more cc, no car loans... I even got my lender to lower my mortgage interest rate. All seems well but I got sued by BofA for an investment property that I surrendered during my filing. I send a copy of the suit to my attorney TWO WEEKS ago and he will no respond after several attempts. I also have some smaller creditors trying to collect again.

So my questions...
1) Does anyone recommend that I complain to the state bar about my attorney? I paid him for a BK, which he filed, but there are too many loose ends for my comfort and I'm getting no support.
2) I'm considering finding a new attorney to file civil suits against BofA and others for collections and negative credit reporting. Does anyone have experience doing this?

[music12]

try calling your attorney. he must be busy with current bk cases and put your letter at the bottom of the pile. it's too early to go to the state bar, based on what you wrote. leave that as a last resort. if you call the state bar, the most they would do is call the attorney themselves, which then would make your relationship with him awkward. so try calling and stress that there is a lawsuit against you and you need immediate advice.

it is unusual that so many creditors would try to collect after bk. are you sure your discharge was properly filed? do you have a copy of your discharge letter? one thing you could do if you can't get hold of your attorney is write a letter to those trying to sue you, with a copy of your discharge, and threaten to sue them if they don't stop.

[jtindisguise]

I am eager to do something because the house that BofA is suing me for is about to go to sheriff sale. I assume that once thats in the books it may take some effort to correct.

I believe that my 7 was done properly. There are about 3 creditors out of 20 that are still trying. The law firm that is suing me on behalf of BofA included a copy of my discharge in their pleading. They are obviously aware of my discharge.

[music12]

then what reason does BofA give for suing you anyway? did you reaffirm?? what are they saying?

[jtindisguise]

They are seeking a foreclosure judgement and to reassess damages. The complaint states that the sheriff sale was stayed do to the bk. No, I did not reaffirm.

[HHM]

1) Does anyone recommend that I complain to the state bar about my attorney? I paid him for a BK, which he filed, but there are too many loose ends for my comfort and I'm getting no support.

Your attorney is out of the picture at this point, his/her representation ends at discharge. So, there is really nothing to complain about.

They are seeking a foreclosure judgement and to reassess damages. The complaint states that the sheriff sale was stayed do to the bk. No, I did not reaffirm.

This sounds perfectly normal. It sounds like you are probably in a judicial foreclosure state and therefore the mortgage co. must go through court to get permission to foreclose. No big deal, they are just doing what they have too. You are getting your panties in a bunch over nothing (sorry ladies ) After BK, the bank still needs to go through the foreclosure process to retake title to the property.

[justbroke]

They are seeking a foreclosure judgement and to reassess damages. The complaint states that the sheriff sale was stayed do to the bk. No, I did not reaffirm.

This just sounds like a foreclosure. Since you surrendered the home in the bankruptcy, this is normal part of the foreclosure process (after the relief from the automatic stay).

I think some are still confused about how a lender obtains the title/deed to your property in Bankruptcy. They still must sue you for foreclosure. Since you discharged the actual debt in Bankruptcy, what they are pursuing is known as an in rem action. That just means that they seek to take the collateral as security for the loan.

As for the smaller creditors, the question for is... are they in fact "secured" creditors (like Best Buy, Rooms to Go, Home Depot, and most department store cards)! Yes, they do have rights to pursue their "in rem" or property actions by foreclosing or repossessing the property securing the debt!

I would also have you re-read your attorney services agreement. It probably indicated that once your case was discharged and/or closed, they no longer represent you. Any additional work would be on an hourly basis or under new retainer.

Personally, I would make sure you understand what you're actually dealing with before even thinking of re-opening your case to file a complaint. That can be costly, and so far, I have read nothing which indicates a violation of the permanent discharge injunction.

[music12]

if it's just a foreclosure, then yes, they are just going through the process to get the home. but why "reassess damages"? they should not be getting any money from the OP, right?

[HHM]

if it's just a foreclosure, then yes, they are just going through the process to get the home. but why "reassess damages"? they should not be getting any money from the OP, right?

Correct, any debt is discharged (unless the lender can prove intentional damage, but that is usually beyond the scope of these foreclosure proceedings). That "reassess damage" is probably just 'form' language.

[jtindisguise]

ha ha... panties in a bunch? My dad used to tell me that. ;-)

Thanks guys. I was just concerned when I started getting process servers at my door again after my bk discharge. I thought that is was odd. I asked my attorney if I needed to do anything and he never responded. I realize he no longer represents me but I just wanted to make that all my I's were dotted and T's were crossed.

Yes, this particular property is in a judicial state. I have others, too. I guess I will see the same thing happen again then as well?

Last question… In order to keep an investment property, would I have had to reaffirm?

[HHM]

Last question… In order to keep an investment property, would I have had to reaffirm?

Not necessarily, but you would need to be current on the payments, or be in a position to catch up payments with the lender.

[jtindisguise]

Yeah I haven't made a payment in almost 2 years.
Thanks again!