So I filed for bankruptcy and had my debt discharged, including the note on my property. I even surrendered the property, but now I’m being sued in a lien foreclosure action by the bank. Anyone know why this is happening? It feels like it shouldn’t be happening since the debt was wiped out… just a bit confused.
Hmm, this sounds like a legal misstep by the bank. If your debt was discharged, they shouldn’t be coming after you. You should probably send them a letter with a copy of the bankruptcy order showing that the debt was discharged.
@Wylie
Yeah, sounds like the bank might be in contempt of the bankruptcy court order. They’ll need to dismiss the case if you bring it up to them.
Indigo said:
@Wylie
Yeah, sounds like the bank might be in contempt of the bankruptcy court order. They’ll need to dismiss the case if you bring it up to them.
Exactly. You could even threaten to file a motion for contempt if they don’t take action within a few days. That should get their attention.
I’m not a lawyer, but it might help to send a formal notice of the discharge to the bank’s lawyer too. They should know about it so they can stop pushing forward with the case.
Riley said:
I’m not a lawyer, but it might help to send a formal notice of the discharge to the bank’s lawyer too. They should know about it so they can stop pushing forward with the case.
Good point! A direct notice might work in this case, especially if the bank isn’t aware of the discharge. It might make them drop the case faster.
Wait, so the property was ‘surrendered to the creditor’? Does that mean the bank still has rights to it even after bankruptcy?
Sai said:
Wait, so the property was ‘surrendered to the creditor’? Does that mean the bank still has rights to it even after bankruptcy?
Nope, the debt was discharged, but the property itself was surrendered directly to the creditor. Basically, you gave the property back, but you shouldn’t still owe anything on it.
@Indigo
Got it! So they shouldn’t be suing you unless they missed something with the paperwork. Makes sense now. Thanks!
Just FYI, if they keep pushing, you could also file a contempt of court motion in bankruptcy court to enforce your rights. It may cost a little but can be worth it if they don’t back off.
Alex said:
Just FYI, if they keep pushing, you could also file a contempt of court motion in bankruptcy court to enforce your rights. It may cost a little but can be worth it if they don’t back off.
Yeah, that’s what I was thinking. Filing for contempt should definitely put pressure on them. You don’t want them to just ignore the discharge.
Man, this sounds really stressful. I hope it works out for you! Just keep your cool and follow the advice here, and hopefully the bank will back off.
Ridge said:
Man, this sounds really stressful. I hope it works out for you! Just keep your cool and follow the advice here, and hopefully the bank will back off.
Thanks, I appreciate it! It’s been a crazy process, but I feel a little better knowing what steps to take now.