Surprises in store for us?

[copernicus]

Apologies for this lengthy post.

We discharged a Ch7 in Illinois the end of January 2010 which included our house. I lost my job the previous August and filed in October. We vacated the house later that month and finally moved to a friends vacant house in Georgia. Not knowing what the process was, our attorney basically told us to leave it to the bank, we contacted the mortgage holder (CitiBank) and let them know the house was empty. They didn't seem to care. We've received tax notices but again our lawyer just says ignore that and leave it to the bank. Once a month we receive a "statement" from Citi that says we are so many dollars in arrears but that it is understood the loan might be part of a bankruptcy action and that we could call to tell them to not send the statement any more. What's with that? Now we've received two notices that we are expected to purchase insurance and that if we don't produce proof of coverage they'll just get some at a much higher rate than we could get ourselves. I responded that the house and insurance is their responsibility and if they have have any questions to contact our lawyer and added his contact information.

Is this bank trying to find a way around the Ch7? Is there a trick they can pull to ruin my new job and sap our bank accounts? From what our lawyer has said we're in the clear on everything but I am a little concerned cruising along in unknown territory.

The only creditor that showed for the Ch7 hearing or even contacted the court was a credit union with a second on the house and those for the truck and travel trailer. We willingly cooperated in surrendering the truck and trailer after the discharge. We have also received sporadic demands to voluntarily surrender items by someone in Arizona representing Best Buy. They don't stipulate any items. The other day I came home to find a notice from a "court appointed" server wanting to present some "papers of financial importance". They came while I was at work and my wife was out of town. I called their number but could only leave my name as their office was already closed for the day. Very mysterious.

If anyone can provide some insight on what to expect and what we should do about CitiBank and the firm in Arizona we would be most grateful. We're not losing a lot of sleep but we'd just like to have some assurance that things aren't going to just tumble down on us when we're least expecting.

[debee]

It's normal for the lender to send out the standard "get insurance or we will at a higher price" letter. It's automated. We've gotten them even though our insurer was also our lender and there was no lapse. Just some kind of typo on their end.

Anyway, they will get the insurance and they name themselves as loss payee. They do it to protect their interest. So let them. They can't make you pay for it. Their bankruptcy dept is not communicating with their insurance dept. That's all.

As for the other creditor, I believe whatever you buy with a Best Buy card carries a purchase money security interest (PMSI) which is a kind of lien that passes through bankruptcy unaffected. What that means is they are entitled to whatever you bought on the card. It's customary for various worm-types to emerge from the post-bk soil and threaten to repo the old tea kettle (or whatever) if you don't pay up. Your response should be, "Ok, come get it." Once they realize they cannot scare you into parting with any of your money, they slink away. They don't want the stuff.