Filing Chapter 7 - Citifinancial

[Dewkitty]

We signed our chap 7 petition yesterday and it was being filed today. We have a personal loan and a home equity (3rd mortgage) with a local Citifinancial office that are both claimed in the bankruptcy (loans are about 3 years old, payments were made regularly until we had our financial issues start back in June). They've been very harrassing in their phone calls, including calling me at work 3X after being told I could not receive personal calls there.

When I called their office today to inform them of the filing and give them our attorney's name and number so the phone calls could stop, I was told "I didn't think you could do that with mortgages!" Now did I miss something? Has anyone else dealt with them in their bankruptcy that we need to be on the lookout for any problems? I told her you can file bankruptcy on any debts, and it's sorted out by the trustee, judge and attorneys. Both loans have under $7,000 owing on them. We also noticed back in September or October, when we started having real problems keeping up the payments that the account numbers on the statements magically changed. Our attorney made sure each one was listed separately on the debt list, so both the old and "new" account number for each loan was there.

Should we be watching for anything else from them that might cause trouble?

[drowning123]

I had a local Citifinancial. It was a personal loan. They tried the lawsuit thing but had to withdraw after they were notified of my bankruptcy. The law is the law. Just ignore them. Sounds like you have a good lawyer.

[tcreegan]

Hi Dewkitty,

I was told "I didn't think you could do that with mortgages!" Now did I miss something? ....you didn't miss a thing, they did ! Your lawyer has you double covered, good job.

They've been very harrassing in their phone calls, including calling me at work 3X after being told I could not receive personal calls there. ...probably 20/20 hindsight but this is illegal per the Fair Debt Collection Practices Act.

Document any further communication with them, if they attempt to get you to pay after being notified of the BK, they are violating the BK automatic stay and can be sued.

Hope your case goes smooth as silk, sounds like you have a good attorney!

Tom in Colo

[DebtHater]

I didn't think you could do that with mortgages!

One of two things caused them so say this. They are either inept and don't have a clue or it's nothing but scare tactics. As you've experienced, they're opinion of themselves is they are above the law. Don't worry about these bottom feeders and move on.

[Dewkitty]

Thanks for the input, everyone. Helps put my mind at ease. Our attorney's assistant called me the other day saying that Citifinancial had called her and was demanding we still pay the equity loan payments if we were living in the house. She called me to double check to see if we'd changed our mind and were keeping the house with a reaffirmation so she could amend the paperwork if we were. I told her no, our plans hadn't changed and we were surrendering the house. I told her about how bad they'd been to work with trying to sort things out, she told me she'd let our attorney know and if they tried any contact with us again over it, to tell her and she'd call them and let them know "the rules".

Even after our credit is recovered in a few years, we will *never* finance anything through Citifinancial again.