Legal Question in Bankruptcy in California

Lender sold discharged loan what do I do

We recieved a Chpt 7 discharge last summer our house was foreclosed in Dec. by the 1st lender our small second has been sending us billing notices since August. I have repeatedly called and sent our papers to them about the discharge. I just recieved today a notice from them that they have sold the loan so I called and was told that the new servicer can and will collect on the debt and there is nothing I can do. I really am afraid this will be a new negative on my credit report and have been able ro raise my score to 679 since summer so I am fearfull this will damage it.


Asked on 3/18/08, 6:28 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Lender sold discharged loan what do I do

What you describe sounds like a violation of the discharge order. There are steps that you can take to hold them accountable, but you will probably need the help of a local bankruptcy attorney. Call your local county bar association to see if they have a referral service.

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Answered on 3/18/08, 6:41 pm
Judith Deming Deming & Associates

Re: Lender sold discharged loan what do I do

If the loan was not included in the discharge, then the lender is entitled to collect on the debt, unless it was purchase money. If you properly listed the loan in your chapter 7 bankruptcy, then the lender and/or any collection entity employed by him is in violation of the automatic stay. In order for them to seek money from you they will have to first go to court and get a judgment based upon their being owed money under a secured loan which was foreclosed upon by a senior loan and that they are a "sold out junior lien holder"; at that time you can take your paperwork to court (assuming you did not hire an attorney to do your bankruptcy).

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Answered on 3/18/08, 7:21 pm


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