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Strange Situation-Did Lawyer Do His Job?

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One of what should be a former lien holder on our house is knocking the $%^&* out of our credit rating.

Very quick history: BK 13 filed 11/01, payment plan OKd 5/02; converted to BK 7 1/03, discharge 4/29/03. Told lawyer and trustee we were relinquishing the house in the BK. Abandonment notices went out to the 3 mortgage holders.

We were getting letters telling us the amount needed to "correct the default" on mortgage #2. Finally a letter asking for payment by 6/8 or they would foreclose and we would have to pay all court costs etc.

Upon calling them, they acted very surprised that we stated we had given up the house. "Oh, it's included in the BK?" They then said the letters would stop. They had applied for and gotten relief from automatic stay. Geez, they need to hire better lawyers.

However, problem is #3, which was to be stripped down in the BK 13. Since it didn't happen, they have become a lien holder. On our reports they are reporting $34000 as collection, overdue over 120+ days. Being they are the (alleged) #1 predatory lender in the US, I am waiting for them to pull some kind of trick out of their sleeve to s---- us.

Now, where was our lawyer in all this? Didn't he make sure these lenders knew the house was surrendered? #1 holder is OK; they are reporting correctly and started foreclosure but within confines of the bankruptcy.

I've put in a call to our lawyer but haven't heard yet. I need to get started on correcting the many errors on our reports but am wary of even touching lender #3 until I have more facts about whether the lawyer did his job.

We are not sue happy, just tired of being shafted. We lost both a malpractice suit and also almost our house several years ago (not in bankruptcy but an irregularity in the sales contract) because lawyers didn't do their jobs. Never heard of legal malpractice until a year ago.

Any comments would be appreciated. Is this a mess or what? Should I just go ahead with the other corrections or wait to see what info we can get on lender #3? I didn't sleep last night because of this... :mad:

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My lawyer called Friday. He's just super busy and 2 days a week are spent with 341 meetings and 1 day is at the US main court over in the next county.

He told me that credit bureaus are immediately informed of a bankruptcy discharge and are given the Schedule F list of creditors involved. My accounts should have been updated by them.

The large "equity line of credit" (bogus!) showing as 120+ days late/collections should read as discharged in the BK 7. This is a huge error as the amount is $34000. They were to be stripped down in a BK 13 but we converted to 7 and gave up the house. Hence, this account should read "Included in BK 7".

Finally, he said to go ahead and dispute all the wrong info with the credit bureaus. The fact that mortgage holder #2 claims not to know of the BK 7 is incorrect; they were notified of everything as the case went along.

So he did answer; he usually does. Very nice man and even though we technically aren't his clients after discharge he never complains when I call his office for more info. He said any problems with these creditors, let him know.

Guess I'm so upset it makes me more impatient then normal, but you know how important these scores are. I need a new car (used one actually, something in range not more then $3000 because I drive very little now due to disability) but even with a small loan it's important to get the best rate.

Thank you for your interest :)


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