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Bankruptcy Law/foreclosure after bankruptcy


Me and my wife filed 03/01/2012 discharged 6 months later we had 2 pieces of property, 2 different banks, one property they foreclosed and sold before we could even file. The other one is a house it was to be sold on the courthouse steps 09/19/2011 But the bank cancelled. (Bank of America) I want them to foreclose so we can move on. But they say they have record of discharge. But they are waiting on The Final Decree from the court. My att. says there is no such thing. All my other creditors have sent us our 1099s and moved on. I just want to get this done so I can start my credit over but cant until they foreclose. This is in the state of MO. Thanks for any help you can give me.

Actually you can start today to rebuild your credit and I'd suggest getting a secured visa with good terms (not the ones you get mail solicitations on) -- Wells Fargo has a good one that costs about $19 a year;  many credit unions do as well;  you make a deposit that is collateral for the card and they give you a % of your deposit as your credit line no questions asked.  With WF you can deposit between $300 and $10,000;  credit unions have their own programs.

Why the bank is waiting around is anyone's guess.  A "final decree" is a term of art used in asset cases, where the trustee sent out claims forms and said he's going to distribute assets so file a claim.  If your case was a "no asset" case as most are these days, then there would be a trustee's report of no assets.  The bank is being extra cautious because the bankruptcy estate still has an interest in the property until the case is closed.  If they wanted to foreclose they could file a motion for stay relief as to the estate (your automatic stay went away when your discharge was entered).  The only way the trustee would object to that is if there was equity for the estate.  

Not much you can do here -- just move on with reestablishing your credit, pay lots down when you go to finance something AND put a consumer report in all 3 credit bureaus stating you had filed bk, the house debt was included in it, and the bank is delaying foreclosing.  That should do it.

Good luck,

Lee Horner

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Consumer bankruptcy questions invited. I've been filing Chapter 7, 11 and 13 cases since 1985 in Calif and Arizona. I do NOT do homework questions. Let me know what state you're located in when you write. My bankruptcy practice is limited to California and Arizona but inquiries from other states are welcome. Your local jurisdiction determines exemptions. Find more background information at our website, Individual Chapter 11 and small business chapter 11 questions invited. We can also advise on the creditor's side if for example you have a fraud case, money judgment etc against someone who has filed (or is threatening) bankruptcy. We have filed and defended numerous adversary complaints in bankruptcy court and opposed trustees' demands for turnover of assets from time to time.


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I've written a booklet on land trusts for real estate owners, players and dealers, and co-authored a special edition of "Stop Sitting on Your Assets". I was a writer of a monthly law review article relating to California real estate issues and pending and recently enacted legislation.

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