Legal Question in Bankruptcy in California
Complex foreclosure after Chpt 7 discharge question
Ok, we filed Chpt 7 11 mo ago and recieved a discharge 8 mo ago. We owned 2 homes that we did not reaffirm and are surrendering although we made payments on one until Jan. while we figured some stuff out...I need clarification on non-purchase money seconds, if we included all mortgages in our filing that was discharged will/can the second lenders sue us for breach of contract now that the 1st lenders have foreclosed or is our responsiblilty for the deficency wiped out in our Chpt 7? We are being relocated out of state and really want to move on but I had no idea about non-purchase money at the time of filing and did not ask my attorney these ?'s and now he will not return calls. Thank you for a detailed answer
2 Answers from Attorneys
Re: Complex foreclosure after Chpt 7 discharge question
All that purchase money/non-purchase money/foreclosing party stuff goes out the window when you file bankruptcy. All the mortgages are dischargeable debts and thay can NOT come after you to collect any portion of them. Their liens remain, though, so even though you don't really owe the money anymore, they still have a right to repossess/foreclose on the property.
Re: Complex foreclosure after Chpt 7 discharge question
You have asked this question several different ways and the answer remains the same: if you properly listed all of your debts, then the second mortgage was be discharged. It doesn't matter if it was a purchase money loan or a loan from your Uncle Fred...they can't collect on it.
If your attorney isn't calling you back, get a new attorney that will help you file the proper legal action to stop the creditor from taking illegal collection actions.
Now...please stop asking this question over and over again.
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