Legal Question in Credit and Debt Law in Virginia

I recently had dept discharged through chapter 7 bankruptcy. The debt inquestion was a mortgage on a Florida Condo. I understand that the property will be forclosed on. I received a summons / complaint that specifically says it is an attempt to collect the debt (interest, legal costs, other expenses). It is seeking a deficiancey judgement for the excess debt over sale price. It has count II which is to "enforce a lost, destroyed, or stolen Promissary note, and count III is to restablish the mortgage pursuant to section 71.011 of Florida

Statues.

I need to resond within 20 calendar days (the paperwork is dated 4/21 - it was recieved registered mail on 4/28). Do I just respond to this that this debt was discharged in the bankruptcy, and attach a copy of the discharge order?


Asked on 5/10/10, 9:02 am

1 Answer from Attorneys
Jonathon Moseley Moseley & Associates Law Firm

Yes, exactly. Now I am a Virginia attorney and you are asking about a lawsuit in Florida. You should post your quesiton under FLORIDA law and get confirmation from a Florida attorney.

But in terms of the FEDERAL law involved, which is obviously the same in every State, you woudl do exactly what you proposed.

Presented with with documentation that the debt was included in a bankruptcy, both the court (judge) and the creditors attorney should run away like scalded dogs. The US Bankruptcy Courts DON'T "PLAY." They are deadly serious. They coudl hold the creditor's attorney in contempt, OR WORSE. NOT if they say they did not know. But once they DO know, then they have to drop the lawsuit.

Now, I want to clarify (and this is something you have to ask a Florida attorney about), I am talking about trying to collect ADDITIONAL money from you.

They probably CAN take the condo from you in foreclosure.

You have a choice whether to confirm the mortgage and keep the condo, and keep making payments, or to abandon the condo and make no payments.

They obviously can get the property back from you in foreclosure if you do not pay.

But they cannot come after you for additional money (unless there is something goin on here out of the ordinary that you have not mentioned).

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Answered on 5/16/10, 3:14 pm


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