• Mortgage Debt Lesson: Don't Pursue Collection of a Discharged Mortgage
  • November 21, 2013
  • Law Firm: Burr Forman LLP - Birmingham Office
  • Creditors should double check the bankruptcy status of a debtor/borrower before pursuing collection. As a pending case illustrates, pursuing collection of an initially reaffirmed, but later discharged mortgage could be a violation of the Fair Credit Reporting Act ("FCRA") and Fair Debt Collection Practices Act ("FDCPA"), even when a debtor takes post - bankruptcy action related to the debt, such as making payments, seeking a modification of the loan or short sale of the property.