Reasons to Save Your Bankruptcy Paperwork
Not too long ago, sub-prime loans and other fraudulent lending practices lead to the housing market scandal, causing many homeowners to face foreclosures and file bankruptcy. The downfall of Countrywide Home Loans Inc. opened the door to compensation for many homeowners who were victims of their unfair practices. Countrywide clients who saved their bankruptcy and foreclosure documentation preserved evidence that may help them pursue damages.
Recent events show that lenders may not be done paying for the housing market debacle. A March 2012 Press release by the Unites States Attorney for the District of South Carolina reported that the government reached a $25 billion settlement with the nation’s four largest mortgage servicers—Bank of America, J.P. Morgan Chase & Co., Wells Fargo, and Citigroup. A whistleblower had initiated a claim against these mortgage servicers, which the government prosecuted as a civil case under the False Claims Act.
Through the claim, the government investigated allegations and discovered that the lenders had participated in a nationwide scheme. They fabricated mortgage assignments and committed other servicing abuses, using taxpayer funds fraudulently and abusively.
What paperwork should you save?
Later opportunities for compensation are good reasons to save bankruptcy paperwork.
Papers that are important to keep include:
- Bankruptcy petitions
- Documentation submitted with the petition
- Bankruptcy discharge orders
- Loan transactions before and after bankruptcy discharge
- Foreclosure documentation
Saving the documentation may not just make filing a claim against a lender easier, it may make it possible. Documentation provides legal evidence. So, think twice before throwing away your bankruptcy and related paperwork.