Expert: Terry Leeders - 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
If you listed the debt in the chapter 7, and the case discharged it, it would mean that this is the foreclosure.  They are just trying to transfer the property back to the lender to liquidate to satisfy the mortgage. you will not owe anything else on the mortgage, and are entitled to notice as the homeowner.  bankruptcy discharges debt, it doesn't transfer title, that is what the foreclosure will do.