Expert: Norma Duenas - 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 information and you provided to the creditor may resolve the situation and stop them from continuing any further action if the debt was discharged in the bankruptcy. Another option is to go back to your bankruptcy lawyer and have him file a suit against the creditor for violation of the bankruptcy code. The creditor may be required to pay damages and your attorneys fees as part of violating the court order that has relieved you of personal liability for the debts discharged in your bankruptcy.