Collection after Chap 7 LADY N RED????

[virtualrn]

I filed for BK 7 12/2000. Household were 2 of those discharged accounts. Household assigned these accounts to collection attorneys. Eskanos filed and successfully obtained a lien (without serving papers) on my property in 1/2001. When I sold the property in 2005, I had to pay Eskanos close to $7000 at closing. I did not know this lien existed until then. In 12/2006, I was once again served papers the other account with Household. I faxed this attorney the discharge papers and he withdrew the suit. Now Household lists this account as an unpaid debt dismissed in a Chap 13, 4 years after the Chap 7. Next step for me: I am willing to pursue this all the way and I really do not even want to deal with Household. Question: is the $7000 Eskanos received recoverable?

[isislc]

Question: is the $7000 Eskanos received recoverable?

YES. According to laws here in Wisconsin, if you filed a BK7 and a judgment was en force, that judgment became null and void. You would need to file either a "Motion to Vacate" or "Satisfaction due to Bankruptcy" with the court. This will reverse and money judgments that were made along with them having to RETURN anything collected that was related to the judgment included in BK. Since this monetary judgment was done AFTER the BK, you are technically entitled to the $7,000 and interest.

Now, the good part. You need to contact your BK attorney. Since they pursued a judgment against you during your BK and are still trying to collect on the 2nd account, they are in violation of your stay. Since all attempts to collect by Household and Eskanos are violations of your stay, you are now able to pursue legal action against them since they are BOTH in contempt of court which would also make this liable for monetary compensation for creating hardship and defamation of character. Hope this helps, but talk to your BK attorney pronto.

[virtualrn]

Thanks-gave a call. Attorney is retired but got a referral. Hope he can help. I am serious about pursuing this.

[LadynRed]

The automatic stay was over the day the Ch 7 was discharged. What you DO have is violation of the permanent injunction of your discharge for the collection action, lawsuit and the lien.

The judgment was null and void and so was Eskanos' lien on your property because the debt they sued on was a discharged debt. Since the judgment, and the lien were illegal to start with, Eskanos was not entitled to a dime. I'd be hauling their butts into bankruptcy court for a MAJOR contempt action to get that 7K back.

The other HH debt is being illegally pursued and, obviously, deliberately reported inaccurately, so you definitely have an FCRA beef there, if not another count for contempt of your discharge.