Expert: Mark J. Markus- California Bankruptcy Attorney - 10/18/2009

Question
About 8 months ago my ch. 7 bankruptcy was accepted by the court. I released a particular property and its mortgage then. That mortgage was structured about 3 years ago and had a 3 year balloon attached to it(due now)...the remaining principle was to be due in 3 years in one lump sum. A messenger came to my house a couple days ago giving me papers from a lawyer representing that bank saying I'm being sued for lack of payment (case number 09-1492). It says "SUMMONS" on top. I faxed the bank's attorney a copy of my bankruptcy approval letter and I said I released this property at bankruptcy. Is that all I should do and is that enough? Should I tell them they are breaking the law by harassing me? Incidentally, the amount of principle is 99k and the property (land in Florida) is worth 3k. It is a long story why the principle far exceeds the value of land. Essentially I was scammed. If you like I can give you the attorney's name and the bank's name.

Answer
The terminology you use is a bit confusing.  If you're saying that you received a discharge in a Chapter 7 case and you did not reaffirm the debt owed to the creditors secured by your real estate in Floriday, then they are violating the post discharge injunction of 11 USC 524 by trying to collect and you can bring an action against them for contempt of court in the bankruptcy court.  Providing them your notice of discharge should be sufficient, unless they're really stupid, but you should be prepared to take further action if they pursue it any further.

I'm not completely sure what you mean by your case was "accepted" by the court or that you "released" the property "at bankruptcy,"  so if I have misunderstood your question(s), please let me know.

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