Legal Question in Bankruptcy in California

Chapter 7 Discharge

What can I do to stop a foclosure demanding an amount that was discharged. Our loan was discharged due to undo hardship it would cause our family. The bank reduced the loan to zero balance as per the discharge order (we have letter from them). They still filed a notice of default demanding 20,000.00 in back payments. We were told we were not personally liable and they would have to go to court to enforce their lein. Can you help us with what to to know. We were just notified about the demand dated Jan 18, 2008. Would a lawyer help pro bono? We have two children and may become homeless if this happens.


Asked on 2/05/08, 7:41 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Chapter 7 Discharge

You are correct in that you are no longer personally liable for the loan. However, you were misinformed with respect to the lender having to go to court to enforce the lien.

You borrowed a substantial amount of money to purchase you home. You didn't really expect to be able to keep you house and own it free and clear, did you? The lien survives the foreclosure.

Once the bankruptcy is over, the lender can continue the foreclosure process. You have not described anything that would constitute a legal defense to the foreclosure.

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Answered on 2/05/08, 11:54 pm


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