9th CIRCUIT UPHOLDS $119,000 SANCTION AGAINST OCWEN

By: Craig W. Stewart

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. The Law Firm of Laura Margulies & Associates, LLC has assisted thousands of clients through the bankruptcy process and is sensitive to their needs. Please call me for a free consultation today. Laura Margulies is a principal and Craig Stewart is the managing partner in the law firm of Laura Margulies & Associates, LLC. We represent consumers in bankruptcy and litigation matters in Maryland and the District of Columbia. To learn more about our firm visit our web site at http://www.law-margulies.com.