im being sued for an injury that happened 6 months ago in a house that was in my BK

[jturk]

i got a letter from an attorney saying that someone was injured 6 months ago in a house that i included in my chapter 7 bankruptcy 2 years ago. theyre saying that i still own the house because the bank has not moved forward with foreclosure proceedings. my bankruptcy was discharged & everything.

is this possible that i could be held responsible for this person injury?

i should mention that i havent been to the house in 3 years & whoever these people are. they never had my permission or consent to live in the house. theyre squatters basically. but as i said, i didnt think i owned it.

[ValleYum]

Your situation is *exactly* the nightmare of many walk-away homeowners... PLEASE keep us posted.

Good luck to you.

[IamOld]

jturk - I would imagine your "squatters" see some "cash" coming their way-if neither you nor the bank give anyone permission to occupy the residence - which they didn't - then I would think you could countersue for trespassing, back rent, etc. I have a feeling that you may need an AGGRESSIVE atty to push back at these people to make them go away.

If the bank - somehow - gave them permission to "squat" then - by definition - they would be responsible.

If the "squatters" argue that you abandoned the house then...how can they sue...

[HHM]

As was pointed out, this is the ONE risk that walk away homeowners still face. Now, if you maintained insurance, or the bank forced placed insurance, that is where the claim goes first.

If not, then you may have some issues. Now, will the plaintiff's eventually win, probably not, but you may have to fight it to prevent them from doing so. Also, since the injuries occurred after BK, it is a post BK debt and is not subject to discharge.

[jturk]

????

what do you think i should do? besides the obvious thing being hire an attorney. how can i be held responsible for a house that....

1. i included in a bankruptcy that was discharged.
2. the injury happened to someone who is basically a squatter. i didnt know they were living there & they didnt have my permission.

can i just ignore this? what would happen if i did ignore it?

[HHM]

1st, need to clarify a few facts, have you just received a letter, or has a lawsuit been filed?

2nd, is the house insured?

[jturk]

???

HHM, what did you mean by this statement...

". Also, since the injuries occurred after BK, it is a post BK debt and is not subject to discharge. "


it has been discharged. i dont understand what you mean.

[jturk]

1st, need to clarify a few facts, have you just received a letter, or has a lawsuit been filed?

2nd, is the house insured?

i was sent a letter & just had a conversation with the attorney. i dont think a lawsuit has been filed. im not sure though.
idk if the house is insured or not. its not by me obviously. im going to try to find out if the bank has it insured.

[Freddy03]

HHM, what did you mean by this statement...

". Also, since the injuries occurred after BK, it is a post BK debt and is not subject to discharge. "


it has been discharged. i dont understand what you mean.

If the "squatter" is awarded any damages it would be a new debt b/c it happened post BK.

[jturk]

////

i just found out that the lender does in fact have lender placed insurance on the property. does this change anything?

[jturk]

/////

If the "squatter" is awarded any damages it would be a new debt b/c it happened post BK.

i dont understand what you mean. are you saying that i cant be held responsible because it was post bk?

[Freddy03]

i dont understand what you mean. are you saying that i cant be held responsible because it was post bk?

No that you can be held responsible because it's POST BK. You need to find out what kind of coverage the lender placed on the property. Most of the time it's very limited coverage.

[ValleYum]

i dont understand what you mean. are you saying that i cant be held responsible because it was post bk?

No - what they are saying is if this goes to trial and you lose you WILL BE liable and have to pay them. At least until you can file another Chapter 7 bankruptcy in 6 years.

Even if you "gave up" the house in a bankruptcy until there is a sale and/or change of ownership on the title you still own it and are supposedly liable for any injuries incurred by others on your property.

If the bank has force-placed insurance - point the attorney their way - the bank obviously has deeper pockets than you do. Hopefully they will be happy with whatever they can get from them.

Good luck.

[panda]

Wow, what a mess. I am really sorry to hear of this happening to you. Unfortunately, as has already been stated, this is one nightmare all of us going through foreclosure/vacant property/no insurance are left worrying about until the house is out of our names. I will be watching closely, as I am sure many others will as well. Please keep us updated, and hopefully somebody here will be able to help, but as far as I know you are the first I have seen with this issue coming to a head with an injury and law suit, with no insurance, on this forum. Several of us on this forum have vacant homes with no insurance or our insurance is getting ready to be canceled due to the home being vacant. We have wondered what would happen in the situation you are now facing.

[keepsmiling]

Boy are those some giant cojones on those squatters.
Stuff like this should NEVER be allowed to happen.