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Apr 2013

After Bankruptcy: Bank of America Can’t Stop Themselves

Posted by / in After Bankruptcy, Chapter 13 Bankruptcy / 13 comments

This is a story about how Bank of America violated the bankruptcy discharge, hacking off Gus and Nikoleta, and me.  (I’ve changed the names of Gus and Nikoleta–all the rest of this is true.)  And then hit Gus and Nikki for a “foreclosure fee” while they were current.  And then did it again.

Gus and Nikoleta came to see me in 2009.

Gus and Nikki had been through tough times and they were behind on the mortgages.  They had a first and a second, both with Bank of America.  They were fifteen thousand behind on their first mortgage and Bank of American was about to foreclose.

We put them into a chapter 13 bankruptcy.  The had five years to pay the bankruptcy court fifty thousand dollars–catching up the first mortgage, knocking the second off the house, and paying off their car, and a little something to the rest of their creditors.   (I explain how that works, here.)

In early 2011, Gus lost his job–he used his thirty five thousand dollars severance to pay off the chapter 13 early!  (Pretty gutsy–he was hopeful he could get work again soon.)

After the Chapter 13 bankruptcy was paid and closed in May 2011,  Bank of America misbehaved.   Calling Gus and Nikki day and night, trying to collect that second mortgage that had been knocked off by the Chapter 13.

Gus tried to handle this on his own.  He called Bank of America–and over five months talked to Denise, Eddie, Shauna and Tanisha.  Each of them claimed in different ways that he still owed the second mortgage.  He faxed them five times and sent certified mail.  They kept leaving voice mails and kept billing him.

And in July 2011,  they also put a $450 “foreclosure” fee on his first mortgage, which was, of course, current.

Finally, in April 2012, I filed papers to bring the bank in front of the bankruptcy judge.  (I was way slower than I should have been.)  That started months of back and forth between me and the Bank of America lawyer.  We agreed quickly that they owed Gus and Nikki some money for their aggravation.  And they owed legal  fees, because the bank refused to shape up until I got involved.

We agreed, after several months, what the bank owed us–but then they said they wouldn’t pay unless I promised I wouldn’t do a blog on this whole mess.

Well, I hadn’t blogged on it–my blog is mostly helpful advice, not courtroom drama.  But it’s a legal ethics violation for a lawyer to promise to keep information from the public.  (That sells out the rights of people who might be in the same boat.)

Finally, the bank agreed to drop that demand, and we signed a settlement.

After bankruptcy, Bank of America charged Gus and Nikki a $450 foreclosure fee, even though they were current.  Less than a year later, they did it again.

After bankruptcy, Bank of America charged Gus and Nikki a $450 foreclosure fee, even though they were current. Less than a year later, they did it again.

As soon as the settlement was signed, a new $450 foreclosure fee hit Gus’s monthly bill!  The bill said he owed $450 for foreclosure fees for January 9, 2013, when he was current!

What?  Having spent months fighting Bank of America on his own, this time Gus called his lawyer, me, right away.  He told me to get on it!

I called up their lawyer the next day and asked what the heck was going on.  He assured me the Bank had a right to the $450 and he’d let me know what right as soon as he found out.

Then he called back and said, complain all you want to the bankruptcy court, it will do no good.   Since the bankruptcy is over, the bankruptcy court has nothing to say.

Well, I did complain to the bankruptcy court–I’d been reasonable, now they were pushing us around.

In court last month, their lawyer said this was the same $450 foreclosure fee we had complained about the year before.  We had no business, he said, complaining a second time.

When the Judge asked a follow up question, the lawyer gave a different excuse.  We agree this is a mistake, the lawyer said, it’s in our computer, we can’t figure out how to stop it.

That was four different “excuses” in the space of four weeks.

Excuse one:  It’s right–Gus and Nikki owe the $450

Excuse two:  It’s not part of the bankruptcy; you can’t complain to the bankruptcy judge

Excuse three:  This is the same $450 you complained about before; it’s unfair to complain again

Excuse four:  It’s a mistake; we’re trying to fix it

The bankruptcy judge told the lawyer to come for trial on May 23 with a witness from the bank who knows and can explain what is going on.  Or, you can settle with Mr. Weed and his client.    (I thought that was a hint that the bank should settle, but so far they haven’t.)

It will be interesting to see what their witness says at the trial May 23.  I’m looking forward to it.

(I should say their lawyer may right about one thing–the bankruptcy court has jurisdiction if this foreclosure fee is really a foreclosure fee.  Because the bankruptcy stopped the foreclosure and caught the mortgage up.  But suppose they say, “Oh that has nothing to do with the foreclosure back in 2009.  This is our New Year’s Special no-reason-at-all-fee.  We just call it a foreclosure fee.”

If it is a no-reason-at-all fee, then maybe the bankruptcy court does not have jurisdiction.  But it will sure be fun to hear them explain their no-reason-at-all fee to the judge.

And I’ll order a transcript. )


PS–Here’s the news!  The judge slammed them $4100.00.   Five hundred for Gus for the time lost from work to have to fight this.  And thirty six hundred for me for over ten hours of lawyer time for having to make this fight.  When it first came up I had told them “just fix it–and send $750.” That was $375 for one hour for me; and $375 for Gus for the trouble. They decided to fight and got what they deserved.  (I’m guessing they spent at least three thousand on their own lawyer, too.)









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Robert Weed has helped fifteen thousand people file bankruptcy in Northern Virginia. Robert Weed is a frequent panelist and speaker at the meetings of the National Association of Consumer Bankruptcy Attorneys. He is one of Northern Virginia’s most experienced personal bankruptcy lawyers. As an expert on changing consumer bankruptcy laws, Robert Weed has been interviewed on local and national TV and quoted in newspapers across the country.

  • attorneys springfield mo

    April 19, 2013, pm30 9:24 PM

    BA just keep on adding this foreclosure fees to scam poor customers. Glad you blog this topic so that many can be informed and act accordingly.


    • Robert Weed

      April 20, 2013, am30 6:17 AM


      Thanks for your encouragement!

  • Michelle

    April 19, 2013, pm30 10:53 PM

    Just found your blog, but leaving a 2nd comment for you today! I would LOVE to find out what happens in this case. Please keep it updated. Have found out so much info from this site, thank you for taking the time to write.

    • Robert Weed

      April 20, 2013, am30 6:18 AM


      Glad to give you help and encouragement. Thanks for your kind words.

  • Bruce

    April 27, 2013, pm30 6:58 PM

    Mr. Weed:

    Can the bank go back into my credit report and change the mortgage to Forclosure from “Discharged in Bankruptcy”? I did not re-affirm and have been discharged from Chapter 7 for 1 year and 2 months. I have not been successful in selling the property and can’t continue to squeeze out the payments every month. I am current right now.

    Thank you.

    • John

      May 23, 2013, pm31 5:08 PM

      I am in the same boat, it would have been better for you not to pay as your protected under the chapter 7 discharge. Paying the bank then stopping again is a sure way to get booted quickly. Had not pay at all you could have simply wait for them to foreclose which is usually a year or more. BOA have been known to replace a bankruptcy with a foreclosure. However this can be disputed and corrected.

      • Robert Weed

        May 24, 2013, am31 1:27 AM


        Good comments, John. Thanks for speaking up.

  • adriana

    January 30, 2014, pm31 12:30 PM

    We have filed bankruptcy 2 years ago bank of america has not forclosed done anything keep on sending paperwork to refinance. Fha or any bank wont give us a loan because the deed is still in our name the mortgage was included in bankruptcy what can I do. I live in iowa

  • Faye

    March 24, 2015, pm31 1:09 PM

    Bank of America continues five years after bankruptsy and foreclosure sending me these bills and other mailings pretty regularly. I think they are harassing in a “legal” way because the bills always tend to state that if you’ve filed bankruptsy or if you were discharged of the property in a bankruptsy then this is not an attempt to collect but just info only. It’s harassment, pure an simple and I’m hoping they get a class action lawsuit cause I’ve kept all my papers and I’m joining the suit when it becomes available. The property in question was vacated by me over 5 years ago and it’s probably still sitting empty. It’s maddening at the least and psychological harassment. I cannot believe they continue to get it wrong and set themselves up for further and inevitable failure.

    Thanks for listening and I’ll check back after May ends and see what happened in your case. Please post the outcome.


    • Robert Weed

      March 25, 2015, am31 11:10 AM


      Thanks for sharing. One bankruptcy judge here, now retired, in an extreme case, said the small print doesn’t help them and sanctions a creditor for that kind of thig.

      He went off on the “if” saying heck you could say that to everybody. It’s way different than saying, we “know” you have filed bankruptcy. Mostly we have very conservative judges here, so hope you find someone where you are who will take your complaint seriously.

  • Dennis Baze

    November 3, 2015, pm30 6:10 PM

    I filed a Chapter 7 Bankruptcy in 2010 and it was discharged not long after. My mortgage with Bank of America was included in this. In September this year I sent them a Cease and Desist letter asking them not to contact me in anyway. They sent me two letters and a statement. When I visited my old neighbor back in May of this year they advised me that Bank of America has been sending representatives to check out the property that was included int he Bankruptcy and asking questions about where I am located. I made a complaint through the BBB and a representative from Bank of America called me after I asked them to. I am beyond frustrated and my anxiety has been at an all time high. I am trying to move on from my past and they constantly remind me of it. I am on anxiety medication now and suffer from anxiety attacks. I asked them to stop but they continue to contact me.

    • Robert Weed

      November 3, 2015, pm30 10:50 PM


      Well it’s probably a bankruptcy discharge violation. Some bankruptcy judges will fine them at least a little to get them to stop; some don’t care. (I have one of each here.) You should ask your bankruptcy lawyer to ask the judge to make them stop.

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