In re Kent
Jan 22, 2016OUTCOME: Settled on the Record
Debtors filed Chapter 13 Bankruptcy and they were current on their mortgage at the time of filing. The Bank asserted that the Debtors mortgage was not discharged in their bankruptcy. The bank continued ... to send collection letters and reported delinquency to the Credit Reporting Agencies after the Discharge. Debtors sued asserting violations of the discharge injunction. The Court ruled that the Debtors mortgage was discharged in the chapter 13. At the damages hearing, the Debtors and the Bank settled after a half day of trial for a cash payment of $45,000 and $10,000 principal reduction in exchange for dismissal of the case and waiver of all claims.
