Confused About Forclosure After Ch.7
I filed for Ch. 7 and gave up my home in the bankruptcy - I've recieved a letter stating that my debts have been discharged. Since then, the mortgage holder is forclosing on the property and in the summons I was served it says they are asking for a personal or deficiency judgement against me (in case the property isn't sold at a price that will cover the mortgage and legal expenses, etc.) I'm guessing that means I'll owe them the difference - I thought that once the debts were discharged creditors could no longer attempt to collect on the debt. Anyway, I'm confused now and scared that I'll have to end up still owing them even though my bankruptcy case has been discharged. Is this normal procedure or is something messed up?
Answer:
Yes, something is messed up. You are not liable for a deficiency judgment, and by asking for one against you, the mortgage company is violating the discharge stay the Court entered when you got your discharge. Speak with your bankruptcy attorney. Often, a simple phone call will fix things; if not, the mortgage company can be sued for damages.
| Bankruptcy FAQ Main Page | Do It Yourself Bankruptcy | Cost Of Bankruptcy | Business Bankruptcy | Bankruptcy Types | Bankruptcy Procedure | Bankruptcy Mortgage | Bankruptcy Law | Bankruptcy Info | Bankruptcy Forms | Bankruptcy Debts | Bankruptcy Court | Bankruptcy Chapter 11 | Bankruptcy Chapter 7 | Bankruptcy Alternative | Bankrupcty | Bancruptcy | Personal Bankruptcy Laws | Personal Bankruptcy | Life After Bankruptcy | Filing Bankruptcy |