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Mortgage debt was discharged in Chapter 13 Bankruptcy

Asked about 4 years ago - Dallas, TX

My Chapter 13 Bankruptcy was successfully completed and discharged in May 2007. The primary reason for filing was to handle the debt and off stay a foreclosure. After my Chap13 was discharge the Mortgagor/Lender filed a Motion for "Clarification and/or Motion for Reconsideration of Order on Debtor's Objection to Claims". The Judge ruled in my favor and denied the Motion. Now, the Mortgagor/Lender has totally ignored that ruling and is aggressively pursuing to collect this old debt that was discharged. I immediately made my Bankruptcy Attorney aware of the matter. I have not heard back from my Attorney for several months now. I am not sure if they are too busy or what; I do not owe the Attorney any money; I made all of my payments to the Trustee on time, and I’ve made every Mortgage payment on time. I am anxious to get this matter resolved because the Mortgagor has now doubled my monthly payments and threatened to accelerate the loan if I do not pay all of the old debt. I do not want to act irrational or disrespect my previous Bankruptcy Attorney but I believe my situation need immediate attention. Should I try to engage a new Attorney at this point? If so, would it be another Bankruptcy Attorney or does my problem fall under a different legal category?

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Attorney answers (3)

Shelly Crocker

Reputation Level 11

Answered about 4 years ago. Chapter 11 Bankruptcy Attorney in Seattle, WA.

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Many bankruptcy lawyers are uncomfortable litigating claims against mortgage companies, although an increasing number of us are becoming more familiar with the types of issues raised by your question. It sounds to me like you may want to keep trying to get in touch with your lawyer, and let them know that you were satisfied with your service but you need to get this resolved right away. They might have the best idea of who to consult with in your area to deal with this abusive lending issue. Otherwise, search Avvo or call you local bar association, or check at the link I added to the National Association of Consumer Attorneys, and ask for an attorney that deals with "predatory lending" and, yes, it should be someone who has some bankruptcy experience but their litigation background is more important. From your email question, it sounds like you have a very strong case, and I agree you need immediate attention. Good luck! Shelly

National Association of Consumer Attorneys

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Benjamin Kirke Sanchez

Reputation Level 10

Answered about 4 years ago. Litigation Lawyer in Houston, TX.

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I previously represented lenders in defending against wrongful foreclosure actions brought by debtors. It was my experience that lenders generally don't ignore a court order, at least not intentionally. Sometimes debtors don't always understand all of the rulings in their cases, and that usually is the fault of their attorneys in not explaining such rulings well. While I don't doubt that you believe the old mortgage debt was discharged, I recommend that you consult another bankruptcy attorney not to address the current mortgage issue but to review your bankruptcy case and fully explain what the orders meant, so that you can compare that explanation with your understanding. If the two are not the same, then you should either get back to your bankruptcy attorney regarding the bankruptcy or consult a consumer lawyer regarding the lender.

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David Leibowitz

Reputation Level 11

Answered almost 4 years ago. Bankruptcy Attorney in Chicago, IL.

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You need an attorney who knows about mortgages as well as about bankruptcy. What you describe may be a violation of the discharge injunction in bankruptcy, the Fair Debt Collection Practices Act and the Real Estate Settlement Procedrues Act among other statutes. Unfortunately, most bankruptcy lawyers don't know much about mortgage law, so do look for someone in your area who defends against foreclosures. Look for members of the National Association of Consumer Advocates. Ask your local legal aid office who they know who handles such cases. Do not let your mortgagee bully you in this situation.

In the first instance, however, do get a competent bankruptcy attorney to assert that the mortgage lender's actions are a violation of the discharge injunction.

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