Thomas F. Miles, Attorney and Counselor at Law
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Personal bankruptcy in California can mean foreclosure help

The real estate crisis that hit California over the past few years caused many people to have trouble making their mortgage payments. For some, an option to remedy this problem was to contact their lender to seek a modification. For others, a personal bankruptcy offered a chance to relieve some of the stress caused by their inability to pay.

In some of the personal bankruptcy cases, debts that were owed to lenders were discharged. Once discharged, the money could not be collected and attempts at collection were not allowed. However, some lenders have recently been accused of violating these rules.

In one case, Bank of America sought to collect a debt that had been discharged in a personal bankruptcy. In fact, the bank sent letters, made calls and took other actions in an attempt to collect the debt. A court in the home state of the homeowner being harassed by the bank held that the bank should pay a fine in the amount of $10,000 a month for each month that they attempt collection.

A personal bankruptcy in California offers many benefits to people who are having financial challenges. In fact, in most cases, the debt discharge that comes at the end of the process offers a chance to restart previously damaged financial lives. However, when a person thinks that they are in a situation similar to those noted in the recent report, they may wish to seek information about how to protect themselves. This can come from research and from professionals who are familiar with the bankruptcy process.

Source:, Bankruptcy Judge Sends a Message to Bank of America, Peg Brickley, Oct. 4, 2013

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Thomas F. Miles, Attorney and Counselor at Law
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