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Bank of America Fined For Harassing Couple Whose Debt Was Discharged In Bankruptcy

Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “Does Bankruptcy stop foreclosure?”


Late last year a bankruptcy judge in New York ordered Bank of America to stop harassing a couple over a loan that they no longer owed. Not only did the judge insist that the banking giant stop, the judge put his money where his mouth was, saying that the bank would be fined $10,000 per month for every month it continues harassing the innocent couple.


Stacks of Cash Charlotte Bankruptcy Lawyer North Carolina Debt Discharge AttorneyThe case revolves around a home loan that was taken out by a couple in New York, Edwin and Michelle Ramos. Like many families, they found themselves upside down in the house with no way to reasonably tackle their debts. The couple then filed for Chapter 7 bankruptcy protection, which they successfully completed, and had their loan discharged, though Bank of America was still allowed to foreclose on its property.


The Ramoses understandably believed that once the bankruptcy case had been discharged they would stop hearing from their creditors. Bank of America, however, decided to ignore the bankruptcy order and continued calling and writing the Ramoses, sending them dozens of letters and leaving dozens of messages even months after the bankruptcy case had been closed.

The judge in charge of the case, Judge Robert Drain, said that he was appalled by the bank’s behavior and said that he hopes his ruling sends a message to other lenders about what will and what will not be tolerated in the future. The bank ignored the judge’s specific order to leave the Ramoses alone and even now say they will agree to stop calls and letters concerning the debt, but will continue to send informational notices to the couple regarding what they should do to continue to hold onto their home.


This is not the first time Bank of America has been fined for harassing those in the midst of a bankruptcy case. Back in March of last year a bankruptcy judge in Florida fined the bank $220,000 for repeatedly violating the court’s orders regarding a loan-modification agreement. The bank sent letters and placed calls to the homeowners claiming that substantial payments were due despite the judge’s decision that the debt ought to be considered paid.


If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.


About The Author: 

Bryan 1  Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues.  Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree.  After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations.  He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte.  In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.



“Bankruptcy Judge Sends a Message to Bank of America,” by Peg Brickley, published at WSJ.com.


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