Redwood City, CA Bankruptcy Law Firms & Lawyers

The creditor is violating what is called the "discharge injunction". That is the order of the bankruptcy court that prohibits collection of discharged debts permanently. The court will award you money called sanctions and attorneys' fees against a creditor for the violation of the discharge injunction. The bankruptcy judges take the discharge injunction very seriously. You say that the creditor is "now filing suit". Has the suit actually been filed or just threats? You need to send the creditor a certified letter, return receipt requested, with a copy of the Discharge and tell the creditor in the letter that if it contacts you again or sues you in any manner you will ask the bankruptcy court to award you damages and attorneys' fees for the violation of the court order. If the creditor continues to call you then document the calls in writing date and time of the call, who called you, what was said and if voicemail messages are left for you then you must preserve them for the court to hear. If that happens then see a bankruptcy attorney in your area because the lawyer will probably take the case on a percentage of the recovery or maybe just for the fees that the court will award you. If you have been sued, then make sure you answer the complaint timely and attach to your answer a copy of the Discharge. It would be very unusual if you were sued by a lawyer for the creditor knowing about the discharge so make sure you inform the creditor's attorney of the discharge in writing. Again, you might get paid a substantial sum for the violation of the discharge injunction and any bankruptcy attorney can represent you based on a percentage of what the court will award you or for just attorneys' fees awarded by the court. Your previous attorney is not responsible for creditors that break the law no matter what he did to deserve being disbarred. However, make sure you did get a discharge first given that your previous attorney may have not told you the truth. Considering that he was a bad apple that lost his license to practice law you need to make sure the discharge was actually granted.

A short sale will be the best option, the bank sells the house for less than the amount of the loan and will not go after you for a deficiency which they can do if the foreclose.