Legal Question in Bankruptcy in California

Re: Can you be sued for breach of contract after chpt 7 discharge

It depends; if the second lien interest was still on the house and the house was not foreclosed on nor given back to lender during the bankruptcy and you did not seek to "avoid the lien" during the bankruptcy, then probably yes. Remember, in a chapter 7 you cannot just list SECURED debt and expect it to go away unless you give back the security during the bankruptcy proceeding. The only debt you can walk away from without doing anything affirmative is unsecured debt, like visa, mastercard, etc. It is the same thing as having a car loan--you can discharge the car loan if you give back the car but not if you keep the car.

Re: Can you be sued for breach of contract after chpt 7 discharge

If you listed the second mortgage properly on your bankruptcy petition, they should have received notice of the bankruptcy and the debt would have been discharged. Any subsequently loan purchaser would be bound by the discharge and could not legally collect this debt.

If the creditor insists on pressing forward, your bankruptcy attorney can initiate proceedings in the bankruptcy to holder the lender in contempt and seek sanctions. If your attorney isn't returning your calls, get a new attorney.