Foreclosure Defense After Bankruptcy

Foreclosure Defense After Bankruptcy

When someone files bankruptcy, all the causes of action and counterclaims that they have as of the date of filing are included in the bankruptcy estate (usually as unliquidated damages), irrespective of whether those claims are specifically mentioned in the schedules.

That means that a homeowner generally cannot bring those causes of action later against the lender, if they end up facing foreclosure. For example, a borrower who obtains a loan in 2002 and receives a bankruptcy discharge in 2008 can’t then bring a claim against the bank in 2011 for what happened during 2002. Because states like Ohio allow you to bring old claims against a bank suing you on the note in recoupment, you could be giving up your ability to fight off the bank later. Thus, if you are thinking about bankruptcy, it is important that your bankruptcy and foreclosure lawyer understand your situation to ensure potential claims are not missed.

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