Legal Question in Bankruptcy in California

Re: Assignment of rent and legal fees

I would be willing to bet that when you got your loan you gave your lender a deed of trust and an assignment of rents; every reputable lender I know would require such a document. This means that as additioanl security for your promise to repay your loan, you have assigned the rents to them to collect and apply toward the outstanding amount owed. Given this probablity, there is no way for them to collect the rent without the tenant finding out that they are now supposed to send the money to your lender! This is not a violation of any "privacy rights" if you have agreed to this provision in order to get your loan. In addition, if you have filed bankruptcy, that is a matter of public record and any person can access the information in your petition, so it is hardly a secret. Likewise,I have never seen a loan agreement or promissory note that did not provide for the additon of attorneys fees to the amount of the loan if the lender is required to incur such expenses to protect the security and/or obtain payment under the loan. Your lender obviously employed an attorney to prepare the motion for relief from stay, etc., and this would be added to the outstanding loan amount. You need to read your loan documents.