BofA gets Slap on the Wrist from Bankruptcy Judge

Written by CFB Blogger. Posted in Blog

Bank of America Corp. has been ordered to pay $10,000 per month for every month it continues to badger Edwin and Michelle Ramos to make them pay off a loan that had been discharged in a Chapter 7 bankruptcy case. The judge in this bankruptcy case, Robert Drain of the U.S. Bankruptcy Court in New York, stated “This is not just a stupid mistake. This is a policy [by BofA].” From an article by Peg Brickley in the Wall Street Journal, the jurist stated that although the couple’s bankruptcy “relieved them of the obligation to pay off their home loan while preserving the bank’s right to foreclose on its collateral”, an onslaught of letters and phone calls continued to the Ramoses even after their bankruptcy attorney “pointed out that their personal liability had been discharged in bankruptcy”. This harassment reportedly continued until 10 days following the judge’s order that imposed sanctions on the bank. Reportedly, Bank of America said it is “’resolving the issues with the court” and working with the homeowners “while we continue researching and investigating what transpired’”. According to the Wall Street Journal article, Bank of America “has recently agreed to stop the calls and letters except for informational notices that inform the Ramoses of what they have to do to hold onto their home. Chapter 7 bankruptcy absolved them of the obligation to pay the debt but preserved the bank’s lien on their property”. In March, another U.S. Bankruptcy Court judge fined Bank of America $220,000 for recurring violations of court orders that involved a loan-modification arrangement. Consumer bankruptcy attorneys, including those from Client First Bankruptcy, report that lender behavior has not significantly improved despite promises that illegal debtor harassment would cease. One New York attorney stated in the news report, “’This is a national problem. It’s happening all over the place. Why is BofA doing it? Because they can.’” If you receive phone call to your home or cell phone from a debt collection agency pestering you for money, demand proof that you do indeed owe the debt. If you are still unsure how to proceed, call the skilled bankruptcy attorneys from Client First Bankruptcy toll-free at 800-383-6004 for your initial complimentary consultation. We will take you through all necessary steps to protect your finances and your credit. For more information, log onto our new user-friendly and interactive site at www.clientfirstbankruptcy.com. Do not let aggressive debt collectors bully you. Filing bankruptcy stops those harassing phone calls.