California judgment -- impact after a Chapter 7 bankruptcy


B

BetaB4

On another non-Usenet forum someone posted the following situation and I am
wondering if anyone here can offer any information or suggestions:

The poster reported that he filed a no-asset Chapter 7 bankruptcy in
California and recently received a final discharge. Apparently, he had a
property with a first and second mortgage and there was a foreclosure on the
property before his bankruptcy filing. Now, after the bankruptcy, he said
there is a judgment against him which shows up on his credit report.

Here's part of what he wrote,

"I live in CA. The house was foreclosed in San Diego and they placed a lien
on me in Los Angeles county. I do not own real estate now. I foreclosed and
the bank sold the debt to a debt collector. They filed a default judgment
against me in court for the 2nd mortgage. I'm worried the lien will affect
my future purchase of a home."

He did have an attorney represent him in the bankruptcy filing, and his
attorney indicated to him that maybe he (the attorney) would need to file a
motion to re-open the bankruptcy case and then get the bankruptcy court to
void the outstanding judgment. The problem is that it would cost a lot of
money to do that.

My thinking is that most likely the outstanding judgment is an unsecured
debt based on a deficiency judgment following the foreclosure, and that
underlying unsecured debt would automatically be discharged as part of the
no-asset Chapter 7 bankruptcy proceeding whether or not it was actually
listed as a known debt at the time of the bankruptcy filing. If that's
correct, and the underlying debt is an unsecured debt, wouldn't the judgment
now be null and void, and wouldn't the judgment holder be obligated under
the FDCPA to release the judgment and cause it to be removed from the
judgment index?

Would one option for this person be to get a copy of his credit reports,
then write back to the 3 credit reporting agencies and state that the
judgment is for a debt that was discharged in bankruptcy and should be
removed from his credit reports?
 
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S

sttriker

On another non-Usenet forum someone posted the following situation and I am
wondering if anyone here can offer any information or suggestions:

The poster reported that he filed a no-asset Chapter 7 bankruptcy in
California and recently received a final discharge.  Apparently, he hada
property with a first and second mortgage and there was a foreclosure on the
property before his bankruptcy filing.  Now, after the bankruptcy, he said
there is a judgment against him which shows up on his credit report.

Here's part of what he wrote,

"I live in CA.  The house was foreclosed in San Diego and they placed alien
on me in Los Angeles county.  I do not own real estate now. I foreclosed and
the bank sold the debt to a debt collector.  They filed a default judgment
against me in court for the 2nd mortgage.  I'm worried the lien will affect
my future purchase of a home."

He did have an attorney represent him in the bankruptcy filing, and his
attorney indicated to him that maybe he (the attorney) would need to filea
motion to re-open the bankruptcy case and then get the bankruptcy court to
void the outstanding judgment.  The problem is that it would cost a lotof
money to do that.

My thinking is that most likely the outstanding judgment is an unsecured
debt based on a deficiency judgment following the foreclosure, and that
underlying unsecured debt would automatically be discharged as part of the
no-asset Chapter 7 bankruptcy proceeding whether or not it was actually
listed as a known debt at the time of the bankruptcy filing.  If that's
correct, and the underlying debt is an unsecured debt, wouldn't the judgment
now be null and void, and wouldn't the judgment holder be obligated under
the FDCPA to release the judgment and cause it to be removed from the
judgment index?

Would one option for this person be to get a copy of his credit reports,
then write back to the 3 credit reporting agencies and state that the
judgment is for a debt that was discharged in bankruptcy and should be
removed from his credit reports?
he needs to look at his discharge paperwork. If the 2nd mortgage is
included, just send the copy of the discharge papers to the credit
agencies, they will have to take it off.

If the 2nd was not included in the Chapter 7, I would make the
attorney correct it for free. I mean, really? The attorney forgot
about a mortgage?

If there really is a judgement he would have to get some documentation
showing that a collection agency bought that debt. Then he would have
to show the court that somehow this debt was missed. Once he can prove
that he had that debt at the time of filing then it should not be that
hard to get that included into the bankruptcy.

From what I understand it is a few pieces of paperwork that will have
to be filed at the court, but I would call the attorney and get it
done for free, that is a pretty big mistake.


Tony
 

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