Q: Am I entitled to any of the remaining balance of my house after it sold after my bankruptcy?
I claimed bankruptcy many years ago. I keep getting a notification of an outstanding balance with Caliber Home Loans. The house sold in 2017 for over $40,000 more than what I owed on the house. I am wondering if I am entitled to any of this at all.
A: You would be unless you had other creditors. The trustee would have paid all the creditors and then if anything was left, paid you. There should have been a final report in the case.
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A: Yes, excess funds above and beyond all of the fees for the foreclosure and sale go to the homeowner.
The court has to be petitioned for the fees. If you need help, reach out to an attorney in the state that the home sold.
A: Yes you may be able to obtain the surplus funds, but you need to retain counsel that has experience in these type of cases. Although attorneys are not permitted to contact people who post questions, you are certainly free to call whoever you choose to represent you in this matter. Remember a good attorney will be reachable 24/5.
A: Whether you are entitled to any part of the $40,000 worth of home 'equity' depends on whether your claimed exemptions covered all or any part of the house. if not, the bankruptcy trustee would use the $40,000 to pay his fees and any unsecured creditors you have.
You don't say what Chapter of bankruptcy you chose to file, so that makes a difference. If it was a Ch. 13, what does your confirmed plan say about the sale proceeds/
Those continuing notices from Caliber Home loans are another matter. The automatic stay prohibits a creditor, from and after the filing date of the bankruptcy, from making any effort to collect a dischargeable debt from you or from assets included in the bankruptcy estate. The us Supreme Court issued an opinion months ago clarifying how bankruptcy courts treat these sort of creditor statements/invoices, and you should speak to your bankruptcy lawyer about whether you can recover sanctions ($$) from Caliber. The Supreme Court case held that a creditor could not be sanctioned for violation of the automatic stay if it has a valid, legitimate business reason to justify its action, other than attempting to collect the debt.
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