Legal Question in Bankruptcy in California

My husband and I filed chapter 13 three months ago. Our intention was to help rebuild our credit, put our 4 month mortgage arrearages into our monthly payments, and keep our home. We went to court, they granted us our bankruptcy, requested two missing pay stubs and all would be well. We were back on track with mortgage payments for 2 months when I received a call from our attorney telling us that he forgot to file some paystubs and that we would have to re-file our case. As long as that was the worst of it, we were fine. However, because our case had been dismissed (by know fault of our own) we were foreclosed on (Even though our last mortgage payment was posted by Wells Fargo 4 weeks ago). Now, we are forced to move and will have to pay higher for rent then we were with our mortgage. It was never our plan to lose our home. In fact, we were assured by our attorney that our home was safe. I have called the bank, Freddie Mac, the assigned Realtor, and everyone says it is too late for us, except our attorney who is still trying to work on our case. What do we do now?


Asked on 9/03/10, 8:01 pm

1 Answer from Attorneys
Jack Hall Hall Bankruptcy Services

Your attorney should file a motion to vacate the dismissal of the bankruptcy and request the court to order euitable relief of reinstating the automatic stay nunc pro tunc. That would have the effect of nullifying the foreclosure sale. The first part is doable for sure, the second part is more problematical.

More importntly, if you had an attorney and he forgot to file the paystubs and that is what caused the case to be dismissed, that is negligence and tht is malpractice. You have a claim against the attorney. You might do well to get yourself another attorney, and do it quickly,

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Answered on 9/08/10, 8:59 pm


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