Piggy back mortgage and chapter 7 bankruptcy

UPDATED: May 27, 2009

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Piggy back mortgage and chapter 7 bankruptcy

I have an 80/20 loan on my home. I had to file Chapter 7 bankruptcy in Sept. 2008, was discharged 12/08, did not include my mortgages or auto in the bankruptcy, however, Wilshire Credit Corporation (20% lender) said they cannot accept my payments because they show they were discharged in the bankruptcy? What should I do? Am I still liable for the debt? Can they take my home away from me? I haven’t received any correspondance from them since 2/1/09, because they think they can’t contact me due to the bankruptcy laws. What should I do?

Asked on May 27, 2009 under Bankruptcy Law, Illinois


B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

I don't know whether or not this lender is following the law, or making a mistake, without seeing all the paperwork.  You need to take your bankruptcy file, the Wilshire loan documents and the correspondence you did get from them, and have all the facts of your case reviewed by a qualified attorney in your area, to get reliable advice on what to do next.  One place you can find lawyers is our website, http://attorneypages.com

You should do this as soon as possible.  If it's bad news, the sooner you know, the sooner you can start doing what's necessary to protect your home.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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