2nd home in discharged bankrupcy yet ..

[yamadragn]

I live in SC and filed bankrupcy when I lost my job of five years.Well I had an unoccupied rental property that I could not keep.We filed it in chapter 7,yet the mortgage company keeps sending correspondence to collect and reporting it as foreclosure.WE(me and my wife) have called and tried to reason with them politely to just take possesion of the property and leave us alone yet they rudely explain that we took on a dept and we did what we had to do and that we were going to have to take the concequences.The bankrupcy has been discharged for some time now and to my knowledge the home has been auctioned.Can they continue to report it to credit bureau as foreclosed property?I even contacted all bureaus to dispute yet cannot sem to get it corrected.

[Ladynred]

If you let the rental property go in your bankruptcy, then the debt was discharged and it is ILLEGAL for them to attempt to collect on that debt in ANY way. They are violating the permanent injunction of your discharge. There are no 'consequences' here, the debt was discharged - they lose.

In addition to the blatant illegal collection activity, reporting to the credit bureaus on a discharged debt IS a violation of the law. The FTC states that reporting to the bureaus IS collection activity.

Time to stop talking and being polite. Send them a cease and desist letter and you tell them that if they do not immediately cease ALL collection activity on this discharged debt, including removal of all negative marks they've made on your credit reports, that you WILL file a Motion for Contempt and Request for Sanctions against them with the bankruptcy court and they can then deal with a Federal bankrutpcy Judge for the illegal acts. If the court finds against them, they will have to pay ALL of your court costs and attorney's fees and you can collect damages from them.

You could try contacting your bankruptcy lawyer, but he's going to charge you a pretty penny. I'd write the letter first, send it certified, RRR and keep copies of everything. If they keep messing with you after you get the certified receipt that shows they got your notice, follow thru and file the Motion for Contempt. It will mean re-opening your bankruptcy case, but they WILL be forced to stop.