Debtor brought Motion for Sanctions and Damages against Ditech Financial for allegedly violating the Discharge Inunction under 11 USC 524.
Debtor filed a Chapter 13 petition and on Schedule D, the Debtor listed BAC Home Loans Servicing (“BAC”) as a creditor with a claim pursuant to a promissory note (“Note”) secured by a deed of trust on the Debtor’s residence. The Debtor filed a proof of claim on behalf of BAC in the amount of $87,334.55, including arrearage in the amount of $7,010.55.
The Debtor paid his ongoing monthly mortgage payments to the trustee as well as arrears on the Note. BAC did not file a proof of claim to amend the claim filed by the Debtor and did not object to confirmation of the Plan.
The Secretary of Veterans Affairs, as serviced by Residential Credit Solutions (“RCS”), filed notice that RCS would begin servicing the Note.
The Trustee filed a Motion to Declare Mortgage Payment Current and the Court entered an Order on March 31, 2015 finding that the “pre-petition arrearage claim in the amount of $8,546.55 . . . has been paid in full” and the “principal amount due and owing to [RCS] as of January 23, 2015 was $56,496.42.”
The Court entered an Order (“Discharge Order”) granting the Debtor a discharge of his debts pursuant to 11 U.S.C. § 1328(a) on May 21, 2015.
The Debtor made direct payments to RCS beginning November 1, 2016 and never received any correspondence from RCS asserting the Note, according to RCS, was delinquent.