Alabama Bankruptcy Judge Punishes Creditor For Violation Of Discharge Injunction – Filing proof of claim in subsequent case:

In a recent Appeal to the US District Court, the Court Affirmed that Greenpoint Credit, LLC was rightfully punished for filing a claim that had been discharged in a earlier Chapter 7 bankruptcy case.   Alabama residents don’t win very often in Federal Court against big mortgage companies – except in Bankruptcy Court!   This powerful legal tool will eliminate your debts.  If your creditors try to collect the debt after the bankruptcy is discharged, you are protected.  Be sure to contact your Chapter 7 Bankruptcy lawyer to report ANY collection actions by bankrupted creditors.  As you can see here, creditors can be made to pay dearly for their illegal acts.

The Judge ruled that Greenpoint Credit, LLC had filed an old discharged mortgage deficiency claim in a new bankruptcy.  Greenpoint Credit, LLC was Ordered to pay $25,000.00 in emotional distress to the injured Alabama resident.  Damages for Emotional Distress are rarely granted in Alabama.  Greenpoint was also assessed an additional $50,000.00 in sanctions!  

Affirming In re McLean, 2013 WL 5963358 (Bankr. M.D. Ala. Nov. 8, 2013), McLean v. Greenpoint Credit LLC, — B.R. —-, 2014

WL 4207629 (M.D. Ala. Aug. 25, 2014), appeal filed, Green Point Credit v. McLean, Case

No. 14-14002 (11th Cir. filed Sept. 4, 2014) (case no. 1:13-cv-925).

Since 2008, some homeowners have seen their home’s market value fall below their mortgage balances.  Many have found that they now owe tens of thousands of dollars more to the mortgage company than their home is worth. What can you do to protect yourself?

“Short Sale” is a real estate term that has entered our everyday language in recent years. A short sale is done when the market value of the home is less than the amount owed to the mortgage lender.  The mortgage lender must agree to take less than they are owed on the house so that the seller give the buyer good title to the house.   Here is where things get complicated.  The seller makes legal promises and warranties to the buyer, whether the house is sold short or at a profit.  This means that the seller can both lose money and be liable to the buyer into the future. 

So, what happens after the short sale? [Read more…]

They can’t take your money unless they sue you.  Credit cards are unsecured loans.  There is no car or House or TV to take back if you can’t pay the bill.  The credit card lender can easily get the Judge to rule for them and enter a judgment against you for the bill plus their lawyer fees and costs.  They bring a copy of every credit card purchase you have ever made to show as evidence to the Judge.

In Alabama, the judgment allows the credit card lenders to take money out of your checking or savings account.  They can garnish your paycheck. This means that your employer is Ordered to take twenty-five cents of every doallar you earn and send it to the credit card lender that got the judgment against you.  If you own land they use the judgment to ask the Judge to put a lein on your home.  They get 1% interest every month that is added until the judgement is paid in full. [Read more…]

You can get protection from creditors and pay them back under the protection of the Federal Courts without filing Chapter 7 bankruptcy.  Many people qualify to pay pennies on the dollar.  Come by for a free evaluation by Mr. Davis  (not a legal secretary, like the big firms)!

Come in for a free hour of legal analysis

Brent W. Davis