9th CIRCUIT UPHOLDS $119,000 SANCTION AGAINST OCWEN

9th CIRCUIT UPHOLDS $119,000 SANCTION AGAINST OCWEN

| Feb 12, 2018 | Bankruptcy, Blog |

Debtors filed a Chapter 7 and received an Order of Discharge in 2013. From 2013 through 2015, the debtors received letters from Ocwen Loan Servicing in the form of statements, notices regarding foreclosure insurance and escrow statements. Debtors’ intent was to surrender the property. Ocwen’s disclaimers advised that they were informational only and not meant to collect pre-petition or discharged debt. Debtors reopened their case and filed a motion holding Ocwen in contempt for discharge violations.

The Ninth Circuit overruled the bankruptcy court when it ruled that it lacked authority to impose punitive damages against Ocwen. “In this modern age of technology, Ocwen could and should prepare notices that are consistent with the known legal status of its borrowers.” We believe and we would strongly argue the same legal principles the Court applied in this case to our bankruptcy judges here in Maryland.

If you are caught in an endless cycle of debt and are struggling to break free, please call us for a free consultation. Morris Margulies has assisted thousands of clients through the bankruptcy process and is sensitive to their needs. Please call us for a free consultation today. We represent consumers in bankruptcy and litigation matters in Maryland and the District of Columbia.