Personal Bankruptcy Bankruptcy ch7 and mortgage

[Shannon25]

My husband and I purchased a Mobile home in March of 2000, we ended up having to file for bankruptcy ch 7 in Nov 2002, and was discharged in March 2003. We orgionally reassumed the loan with conseco finance wich is now Green Tree because they filed bankruptcy in Nov 2002 as well. As a resul of us filing bankrutpcy I lost my job at the bank where I worked. It was required that my credit was kept in good standing to maintain my job. We struggled to keep the reassumed loan until we could no longer afford it, I was out of work for a year and we eventually had to give the house back. At the time we were living in SC once we turned the house back in we then moved to NC which is where I was able to find work. Now, it has been 3yrs since our discharge and conseco is calling us stating that they have sold the house at wholesale for 13,000.00 and we owe the remaining amt of 40,000.00 on the note. They are stating bankruptcy or not we are still responsible according to the contract we signed. We have all of our paperwork from when we purchased the house and do not have the contract they are referring to. They are threatening my husband stating he can be jailed and our assets and bank account will be liquidated until the bal is resolved. We have no assests and we only survive on what we make. We spoke with our lawyer in SC and he is stating the because we reassumed the house they can still hold us liable for the org. contract, however per conseco(green tree) they are stating that bankruptcy or not we are responsible for the remaining amount. My question is what is the point of the bankruptcy ch 7 that we filed?, it is as if we went through all of it for nothing. None of our other creditors are calling us to pay back a debit. Can you please advise?

 

[Michael Wechsler]

My husband and I purchased a Mobile home in March of 2000, we ended up having to file for bankruptcy ch 7 in Nov 2002, and was discharged in March 2003. We orgionally reassumed the loan with conseco finance wich is now Green Tree because they filed bankruptcy in Nov 2002 as well. As a resul of us filing bankrutpcy I lost my job at the bank where I worked. It was required that my credit was kept in good standing to maintain my job. We struggled to keep the reassumed loan until we could no longer afford it, I was out of work for a year and we eventually had to give the house back. At the time we were living in SC once we turned the house back in we then moved to NC which is where I was able to find work. Now, it has been 3yrs since our discharge and conseco is calling us stating that they have sold the house at wholesale for 13,000.00 and we owe the remaining amt of 40,000.00 on the note. They are stating bankruptcy or not we are still responsible according to the contract we signed. We have all of our paperwork from when we purchased the house and do not have the contract they are referring to. They are threatening my husband stating he can be jailed and our assets and bank account will be liquidated until the bal is resolved. We have no assests and we only survive on what we make. We spoke with our lawyer in SC and he is stating the because we reassumed the house they can still hold us liable for the org. contract, however per conseco(green tree) they are stating that bankruptcy or not we are responsible for the remaining amount. My question is what is the point of the bankruptcy ch 7 that we filed?, it is as if we went through all of it for nothing. None of our other creditors are calling us to pay back a debit. Can you please advise?

It seems your attorney advised you, did he not? The mortgage on a secured debt (lien on your house) is not simply discharged by Chapter 7, entitling you to just keep the house and not pay for it. You will likely need to pay this off but speak to your attorney if you have any further questions.