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2nd Mortgage Lien was stripped and debt of 2nd mortgage was included in Ch 7 bankruptcy, yet collection agency sent me letter?!

Orlando, FL |

My 2nd mortgage was included in my ch 7 BK and the lien was stripped. Yet, a collection agency sent me a letter stating that they represent the mortgage servicer and are attempting to collect the balance owed. The loan is now unsecured and I do not believe that I am personally liable after the ch 7 filling. On what grounds are they trying to collect the debt?

I contacted the original loan servicer and they verified that they contacted the collection agency. So, it is real. But, the rep said something odd, "We are no longer the servicer of the loan." I am guessing they sold it on the cheap to some shady collections agency.

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Attorney answers 6


Because debt collectors are not smart. They don't do a Pacer check of your SS# to see if you filed BK. It only costs them $0.08 per person, but they don't do it.

So they may have violated the FDCPA, the bankruptcy discharge, and state law by asking you to pay the debt you do not owe.

You may have a claim for damages.


Was the 2nd mortgagee (bank) listed as a creditor in your bankruptcy? If so, tell the servicer that and tell them and tell them that they cannot legally continue to attempt to collect on this debt. We usually write them a letter.

If this answer has helped you, please mark it as Best or Helpful Answer. This communication is intended as general information and not specific legal advice and does not create an attorney-client relationship.


Although your 2nd mortgage may have been discharged in your Chapter 7 case, you may not have stripped the lien unless you have an actual court order saying so. In most parts of the US, you cannot strip a 2nd mortgage lien in Chapter 7, only in Chapter 13.

If you have a lienstripping order, send the copy to the collector. If you don't, the debt still affects the title to your property & it might be in your best interest to negotiate the release of this lien with the collector. Hope this perspective helps!



I called the collection agency and they stated,"we know you just went through bankruptcy and are not personally responsible for the debt, but there is still a lien against your home." I then told her that she was wrong and that I had documentation that the lien was stripped and would be glad to fax and mail her a copy. She seemed a little surprised to say the least. So, I will fax and mail her a copy. If I am not personally responsible and there is no lean, I am thinking they really have nothing. And, Mr. Roberts is probably right about them even contacting me about this. Thanks for your comments.

Andre Keith Sanders

Andre Keith Sanders


Make sure you have the court order recorded in your county's public records if you have not done so already. You need a certified copy of the order voiding the mortgage and a certified copy of your discharge order both recorded in the public records.


I always have my clients just send them a copy of the discharge.


Debt collectors do not keep accurate records and it may merely be an oversight. I suggest that you or your attorney send them a copy of the Order Stripping the lien.


Stripping a mortgage in a chapter 7 case is something that was recently reinstated by many judges based on a decision by the 11th Circuit Court of Appeals. It was not available for a number of years. There is a difference between "stripping" a lien and "discharging" a lien. If the lien was discharged (or stripped for that matter), there is a limitation to the kinds of communication a holder, servicer, or collector of the loan can have with you. A consumer bankruptcy attorney can give you more specific information regarding this issue.

The above is for informational purposes only. The offering of this information in no way presumes to create an attorney/client relationship and should in no way be construed as actual legal advice.

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