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#995938 - 07/15/08 08:14 PM Sending billing notices after a BK is discharged
Many Hats Offline
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Orlando, FL
We had a borrower file Ch 7 BK in 1/08. He has a HELOC with us. We stopped billing notices. The BK was discharged in 6/08.

He's still paying us and intends to do so - in fact his loan matures today and he will be signing a modification to extend the maturity date by another 3 yrs - no new note though (since his is no longer personally liable for the debt).

Can we start sending billing notices again?

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#996045 - 07/15/08 08:59 PM Re: Sending billing notices after a BK is discharged Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,416
Bloomington, IN
Quote:
(since his is no longer personally liable for the debt).



If your loan was included in the bankruptcy and discharged and he did not officially reaffirm the debt through the bankruptcy court then he has no legal obligation to repay you and you have no legal basis to be sending him billing notices.

You probably should be discussing this with your attorney.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#996059 - 07/15/08 09:06 PM Re: Sending billing notices after a BK is discharged Dan Persfull
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
If he requests that we send them, and we have something in writing, could we do it? He actually wants us to; otherwise he has to call each month to find out what is due, so it's an inconvenience to him.

By the way, I have asked our attorney and they are researching it. I guess it's more complicated than a simple yes or no answer.

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#996083 - 07/15/08 09:16 PM Re: Sending billing notices after a BK is discharged Many Hats
Marnie Offline
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Joined: Nov 2007
Posts: 437
Nevada
You are saying he reaffirmed with you but did not reaffirm his debt with you with the BK Court? Then you say he is no longer personally liable for the debt but you are going to do an extension for a debt he discharged? Definitely get your bank's lawyer involved because I am not sure you are allowed to do this since his debt was officially discharged. That is what BK protection is suppose to prevent; regardless of his reasons for wanting to pay you, he had the chance to reaffirm with you and didn't.

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#998238 - 07/17/08 07:00 PM Re: Sending billing notices after a BK is discharged Dan Persfull
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
Originally Posted By: Dan Persfull
Quote:
(since his is no longer personally liable for the debt).



If your loan was included in the bankruptcy and discharged and he did not officially reaffirm the debt through the bankruptcy court then he has no legal obligation to repay you and you have no legal basis to be sending him billing notices.

You probably should be discussing this with your attorney.


Our attorney reviewed the BK law and informed us that "they feel comfortable that Riverside can still send notices, even though there was no reaffirmation."

Since he wants notices anyway, I am fine with it, but do you think we should have him submit a written rewuest to us to civer ourselves?

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#998251 - 07/17/08 07:09 PM Re: Sending billing notices after a BK is discharged Many Hats
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
Man I wish this thing had spell check.

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#998309 - 07/17/08 07:37 PM Re: Sending billing notices after a BK is discharged Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,416
Bloomington, IN
I'm not sure how the customer can reaffirm this debt after it has been discharged but I would get the attorney opinion in writing and I would get something in writing from the customer.


Spell checker:

http://www.iespell.com/
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#998340 - 07/17/08 07:49 PM Re: Sending billing notices after a BK is discharged Dan Persfull
Ray_ Offline
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Joined: Aug 2006
Posts: 879
Dallas, TX
Dan you have a link for everything!

I sure would like to know what compliance/reference goodies you use!

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#998413 - 07/17/08 08:44 PM Re: Sending billing notices after a BK is discharged Ray_
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,416
Bloomington, IN
I got the spell check link from Andy a few years ago.

I primarily use AllRegs, but I have links to the FDIC Rules and Regs, the GIR, the MPIG, FEMA, FFIEC, some that I got from others posting in the threads and others that I've accumulated over the years; and I'm fairly decent at searching... :).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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