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    Lien and foreclosure

    Just found out that I don't qualify for a 7 and a 13 would not likely take the lien of my home because I have been lining out of state.

    What would happen to the lien if I was to let my house fall into foreclosure?

    With the drop in values we owe about as much as it is worth.

    Thanks!

    #2
    Ronaldtc, maybe someone will correct me if I'm wrong, but it's my understanding that if you foreclose, the lien and any other debt attached to the property (unpaid property taxes, city fines, etc.) are the problem of the mortgager: when they resume ownership of the title, they assume the liens as well. If you are liable for a deficiency balance after foreclosure, that gets rolled up into the total, but deficiency balances are dischargeable in bk, esp Ch7: once the house is foreclosed, any deficiency balance becomes unsecured debt, just like a credit card.

    Good luck!!!
    Nolo Press book on filing Chapter 7, there are others too. (I have no affiliation with Nolo Press; just a happy customer.) Best wishes to you!

    Comment


      #3
      We had filed a Chapter 13 in April 2004 and were discharged in June of 2007. One creditor, Pressler & Pressler, had a levy on our bank account and liens on both of our automobiles. The debt for Pressler was discharged in the BK. This was an old unsecured repurchased credit card debt. Pressler attempted to levy our bank account once again last month. I filed court papers and demanded they remove the levy and liens because they are in contemp of US Bankruptcy court. As a result of this, the bank released the funds back into our bank account. We also received our motor vehicles registration renewals once again after all these years. I thought this was over and today I receive a legal form from Pressler asking that I sign releases in their favor. I have no idea what this means. Can anyone offer advise??????

      Comment


        #4
        Originally posted by JanUS View Post
        ...today I receive a legal form from Pressler asking that I sign releases in their favor. I have no idea what this means. Can anyone offer advise??????
        DO NOT SIGN THAT FORM! Call your former bk lawyer and if necessary pay for a half hour of advice to get this firm off your back. I hate that these collection companies refuse to play by the rules and we have to pay to have our legal rights enforced! It's so unfair!
        I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

        06/01/06 - Filed Ch 13
        06/28/06 - 341 Meeting
        07/18/06 - Confirmation Hearing - not confirmed, 3 objections
        10/05/06 - Hearing to resolve 2 trustee objections
        01/24/07 - Judge dismisses mortgage company objection
        09/27/07 - Confirmed at last!
        06/10/11 - Trustee confirms all payments made
        08/10/11 - DISCHARGED !

        10/02/11 - CASE CLOSED
        Countdown: 60 months paid, 0 months to go

        Comment


          #5
          Originally posted by lrprn View Post
          DO NOT SIGN THAT FORM! Call your former bk lawyer and if necessary pay for a half hour of advice to get this firm off your back. I hate that these collection companies refuse to play by the rules and we have to pay to have our legal rights enforced! It's so unfair!
          Thank you for responding. I appreciate it very much and it gives me strength.
          I cannot locate my BK attorney so I will have to speak to another one. I feel that this is somewhat shady. I just do not understand what they are trying to do. They want me to sign and notarize these ridiculous release forms. I'm guessing because I threatened to sue them for pursuing this debt after bankruptcy which they did last month. I sent them a scathing letter, plus a letter to the court requesting action against them. The result is this shady release form.

          Comment


            #6
            JanUS, if you can't find your atty, then please know that just NOT SIGNING is good enough for now. Yes, it is very shady what they are trying to do. But you are under NO legal obligation to sign the releases, or even to speak with them on the phone. Any letters (like this one) save for the atty or go ahead and file on in court; any phone calls should also be filed on in court because they are also clearly in contempt of the discharge order, and this company cannot claim that they didn't know of your banbkruptcy, or that it was an accident, because they keep contacting you. In other words, they're as guilty as homemade sin, and it will be obvious in court.

            The bottom line is that if this is unsecured debt that was satisfied by your Ch13, that collection agency is out of luck... unless they can con you into signing over your legal rights and reaffirming your debt. Just don't deal with them at all if you can help it; you don't have to. Good luck!!!
            Nolo Press book on filing Chapter 7, there are others too. (I have no affiliation with Nolo Press; just a happy customer.) Best wishes to you!

            Comment


              #7
              Originally posted by FreshLikeADaisy View Post
              JanUS, if you can't find your atty, then please know that just NOT SIGNING is good enough for now. Yes, it is very shady what they are trying to do. But you are under NO legal obligation to sign the releases, or even to speak with them on the phone. Any letters (like this one) save for the atty or go ahead and file on in court; any phone calls should also be filed on in court because they are also clearly in contempt of the discharge order, and this company cannot claim that they didn't know of your banbkruptcy, or that it was an accident, because they keep contacting you. In other words, they're as guilty as homemade sin, and it will be obvious in court.

              The bottom line is that if this is unsecured debt that was satisfied by your Ch13, that collection agency is out of luck... unless they can con you into signing over your legal rights and reaffirming your debt. Just don't deal with them at all if you can help it; you don't have to. Good luck!!!
              I just wanted to say thank you. Your information is very helpful for me. We are not going to sign those papers. I am going to wait a few weeks and contact a bankruptcy atty to show him. What really bothers me is that in the County where I live, this particular bill collector (Pressler & Pressler) has inside ties to the Civil Court and the DMV. When I went to the Civil Court to complain about the creditor from attempting to sieze the bank account, they gave me a motion to fill out and return. I spent 2 days preparing this motion, typing a letter, copying my BK discharge papers, and the stupid court sent back one piece of paper with DENIED on it, claiming that the matter must be taken care of in US Bankruptcy Court. The levy papers came from the Civil Court. So you see, it's like fighting city hall. I do know I have rights and am in the right on this and, now I am not worried. If anyone cares to google Pressler & Pressler, you will see what debt goons these people really are. I must get an atttorney with his business in another county, not where I live. Thank you again so much.

              Comment

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