Legal Question in Bankruptcy in North Carolina
My niece filed for bankruptcy in 1999 and it was dischared. This past week Wells Fargo took $3000.00 from her bank account for a judgement that was filed in 2001 for a loan that was included in the bankruptcy. She had not been notified of the judgement, nor any attempt was made to contact her. What is her recourse in this situation?
1 Answer from Attorneys
Contempt. The Bankruptcy Courts guard the injunction which is built into the filing and discharge order. In short, a creditor cannot collect a debt that was discharged. There is one exception, that is if there was a valid judgment which was recorded as a lien against real estate and the debtor exempted the equity in the house. The lien must be avoided in the bankruptcy case by motion and order or it will survive discharge. I see no way that Wells Fargo is within their rights under the situation described. A bankruptcy lawyer could fix this problem.
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