Cartago, CA Bankruptcy Law Firms & Lawyers

The mortgage company retains its lien on the home. However, since you listed them in your bankruptcy, you have discharged the debt to the bank. The bank cannot sue you for a deficiency claim even after foreclosure. Since you have already moved, you might want to offer them a quitclaim deed. The credit report should reflect that the mortgage was included in bankruptcy, or discharged in bankruptcy. ou should consult an attorney.

I can only speculate. They were probably working with the principal signer. Also, in a Chapter 13 there is a stay of collection action against a co-debtor so long as the debtor's Plan provides for 100% repayment of the debt. Perhaps his Ch. 13 was dismissed, or perhaps he had to modify his Plan so that the Student Loan was no longer scheduled for full repayment. Since your co-signature was a kind of guaranty, the bank may have been following the laws of guaranty, which require strong efforts to collect from the principal debtor before the creditor can call on the guaranty. You might be able to negotiate some arrangement whereby the bank waives some or all of the needless interest. You might also ask the bank and your friend what were the circumstances that led to the 4-year delay.