Gridley, CA Bankruptcy Law Firms & Lawyers

This is something that you should discuss with a lawyer, but if you want to do the research there is a Federal statute called the Fair Debt Collection Practices Act which you can Google, and there is a provision in that Act about sending a certified letter to the collection agency which may be helpful to you. You should research this carefully if you don't want to consult with a lawyer since there are advantages and disadvantages to sending out the certified letter. Bankruptcy may also be an option for her if she meets the criteria for assistance from the bankruptcy court. I hope that you and you Mom feel better or at least don't have to deal with the stress of those calls in the future.

Here is what is not clear about your question. You say that the bankruptcy was paid in full and you say that the bankruptcy was paid off. What you haven't said is whether all the creditors that filed claims in your case were paid 100% of their claims. If you had an asset at the time you filed or that you acquired during the bankruptcy that could have been used to pay creditors, when you received that assets isn't nearly as important as when you acquired the right to receive it. A lawsuit, even if the result isn't decided, is an asset that your creditors would be entitled to divide up in order to satisfy your debt to them. If you paid 100% of your debt in Chapter 13, great, no problem. But in most Chapter 13 cases, your creditors only get paid pennies on the dollar and the fact you paid what the court found you needed to pay, based on incomplete information, is a serious problem.

Once you receive your bankruptcy discharge, it is too late to reaffirm. But reaffirming a mortgage debt is nearly always a bad idea because if your property is foreclosed on & sells for less than you owe, you are legally responsible for any difference if you reaffirmed. So not a good idea. Instead of trying to refinance with your lender, why not apply for a loan modification instead? Or go to another lender if you really want to refinance. The disingenuous people at your mortgage company who are telling you to reaffirm in order to refinance are telling you to fly without wings. In short, they are saying they will not refinance your loan under any circumstance.