IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

 ) 

Jimmy J. Jernstad and ) 

Pamela A. Jernstad, ) 

 ) Case No.: 11-cv-07974 

Plaintiffs ) 

 ) 

v. ) Judge 

 ) 

Green Tree Servicing, LLC, ) 

 ) Magistrate: 

Defendant ) 

COMPLAINT FOR VIOLATIONS OF THE FAIR DEBT COLLECTION PRACTICES 

ACT AND FOR VIOLATONS OF THE BANRUPTCY DISCHARGE INJUNCTION

 The Plaintiffs, Jimmy J. Jernstad and Pamela A. Jernstad (herein after “Plaintiffs”), 

through their attorney David Linde of The Fox Valley Legal Group, LLC, respectfully 

request that this Court issue a Declaratory Judgment, Preliminary and Permanent 

Injunctive Relief and Damages against Green Tree Servicing, LLC. In support thereof, 

Plaintiffs state as follows: 

 This is a civil action whereby Plaintiffs seek Preliminary and Permanent Injunctive 

Relief enjoining Defendant, Green Tree Servicing, LLC., (hereafter “Green Tree”) their 

agents, employees and those acting in active concert and with actual notice thereof, from 

engaging in further violations of the Fair Debt Collection Practices Act (15 U.S.C. § 1692 

et. seq. (hereafter “FDCPA”)). Further, Plaintiffs requests that Green Tree be held in 

contempt for violations of the Bankruptcy Discharge Injunction (11 U.S.C. §523). An 

actual controversy exists between the parties in that the challenged actions of the 

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Defendant have caused and will continue to cause the Plaintiffs substantial harm unless 

the requested relief is granted. 

JURISDICTION AND VENUE 

1. Jurisdiction of this court arises under 15 U.S.C. § 1692k(d) and 28 U.S.C. § 1331. 

Declaratory relief is available pursuant to 28 U.S.C. § 2201. 

2. Venue is proper because the relevant events occurred within Kane County in the 

State of Illinois, which is located within the Northern District of Illinois. 

3. This is an action brought by the Plaintiffs for violations of the above named Acts 

in connection with a debt that was discharged in Plaintiffs’ bankruptcy and Green Tree’s 

collection tactics in attempting to collect said debt. Thus, the Plaintiffs seek actual, 

statutory and punitive damages. Further, to the extent possible, Plaintiffs also seek 

injunctive and declaratory relief. 

PARTIES 

4. The Plaintiffs are natural persons residing within Kane County, State of Illinois. 

5. The Defendant, Green Tree Servicing, LLC, is a company based in St. Paul, 

Minnesota that owns and services mortgages for consumers in the State of Illinois. 

FACTS 

6. On December 8, 2006, Plaintiffs received a home equity loan from Irwin Home 

Equity. 

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7. On March 4, 2009, Plaintiffs entered into a loan modification agreement with 

Mortgage Electronic Registration Systems, Inc. as nominee for Irwin Union Bank and 

Trust Company. Part of that agreement stated that in addition to the principal balance 

owed at the time of the modification, there was also due “unpaid interest and fees”. 

8. On April 27, 2009, Plaintiffs received notice that the servicing of their loan was 

being transferred from Irwin Home Equity to Green Tree Servicing, LLC. At the time 

that the servicing of the loan was transferred from Irwin Home Equity to Green Tree 

Servicing, LLC, Plaintiffs were not current with their loan payments as evidenced by the 

loan modification agreement entered into the previous month. 

9. On February 24, 2010 the Plaintiffs filed for relief pursuant to Chapter 7 of the 

U.S. Bankruptcy Code. That case was filed in the Northern District of Illinois, Eastern 

Division and was assigned case number 10-07335. 

10. At the time of filing of the Chapter 7, Green Tree was still the servicer for the 

Plaintiffs’ home equity loan. 

11. When the Plaintiffs filed their Chapter 7, they listed Green Tree as a creditor on 

Schedule D of their petition. (See attached copy of Schedule D attached hereto as Exhibit 

#1). 

12. A Notice of Bankruptcy Case Commencement was sent via electronic service by 

the Clerk of the U.S. Bankruptcy Court to Green Tree Servicing, LLC at its preferred 

verified address at: RMSC.com. A copy of that Notice of Bankruptcy Case 

Commencement is attached hereto as Exhibit #2. 

13. On June 1, 2010, Plaintiffs received a Notice of Discharge issued by the Clerk of 

the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division. On that 

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same date the Clerk of the Court sent a Notice of Discharge to all creditors, including 

Green Tree. (See Notice of Service attached hereto as Exhibit #3). The Debt owed by 

Plaintiffs to Green Tree was never reaffirmed. 

14. In March of 2011, Plaintiffs began receiving calls from Green Tree seeking 

payment of the discharged debt. At first, Plaintiffs ignored the calls and/or felt no 

concern about the calls. However, beginning in August of 2011, the calls from Green 

Tree started coming with alarming frequency. Sometimes the Plaintiffs would receive 

multiple calls a day from Green Tree. The calls came from various numbers including 

615-756-3236; 615-851-3425; 615-756-3155; 480-383-2290 and 800-234-7101 ext. 

64347. Many of the calls came from a person identifying himself as “Tomas”. Plaintiffs 

asked “Tomas” to stop calling on many occasions. 

15. On October 14, 2011 and on October 20, 2011, Plaintiffs faxed a written request 

to Green Tree that asked for Green Tree to stop calling. Despite the request, the calls 

continued. On October 31, 2011 Green Tree called Plaintiffs home telephone number 

eight times. Green Tree also began contacting members of Plaintiffs’ family at their 

residences. 

16. In total, Green Tree has contacted the Plaintiffs by phone not less than fifty-five 

(55) times, the most recent call coming on November 1, 2011. 

COUNT 1 

Violations of the Fair Debt Collection Practices Act 

17. The allegations of paragraphs 1 through 16 of this Complaint are realleged and 

incorporated by reference. 

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18. Green Tree is a debt collector as that term is defined under the FDCPA. 

19. Green Tree’s actions violated 1692(d) of the FDCPA as it was intended to harass, 

oppress or abuse the Plaintiffs as the debt being collected could not legally be collected 

due to the bankruptcy discharge. 

20. Green Tree’s actions violated 1692(e)(2) and 1692 (e)(10) of the FDCPA as it 

was a false and misleading representation of the legal status of the debt as being one that 

could be collected. 

21. Green actions violated 1692(f)(1) of the FDCPA as the debt was discharged in 

bankruptcy and its collection is not permitted by law, thereby rendering any means to 

collect as unfair and unconscionable. 

COUNT 2 

Violation of 11 U.S.C. § 523 Discharge Injunction 

22. The allegations of paragraphs 1 through 21 of this Complaint are realleged and 

incorporated by reference. 

23. Green Tree had actual knowledge that the Plaintiffs received a Chapter 7 

discharge. Despite this knowledge, Green Tree continued to attempt collect a debt that 

was subject to the 11 U.S.C. § 523 Discharge Injunction issued by the bankruptcy court 

on June 1, 2010. 

24. The Plaintiffs further allege Green Tree has frustrated the Discharge Injunction 

and the entire bankruptcy process by continuing to contact Plaintiffs. Moreover, this 

contact has caused the Plaintiffs unwarranted and unnecessary time, effort and expense in 

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seeking to enforce rights guaranteed by the Bankruptcy Code. This same conduct of 

Green Tree has also caused Plaintiffs extreme worry and anxiety. Further, as Jimmy J. 

Jernstad works third shift as a truck driver, the phone calls made by Green Tree during 

the day interrupted his sleep and jeopardized his safety and the safety of the public. 

Accordingly, in order to protect the Plaintiffs and all similarly situated debtors who have 

completed their bankruptcy cases and secured a full discharge there under, this Court 

should hold Green Tree in contempt and impose sanctions against Green Tree for its 

willful violation of the bankruptcy discharge. 

WHEREFORE, the Plaintiffs, having set forth claims for relief against Green Tree 

respectfully ask this Court as follows: 

A. That the Plaintiffs recover against the Defendant a sum to be determined by 

the Court in the form of actual damages for violations of the FDCPA and the 

U.S. Bankruptcy Code; 

B. That the Plaintiffs recover against the Defendant a sum to be determined by 

the Court in the form of statutory damages for violations of the FDCPA; 

C. That the Plaintiffs recover against the Defendant a sum to be determined by 

the Court in the form of punitive damages for violations of the FDCPA and 

the U.S. Bankruptcy Code; 

D. That the Plaintiffs recover against the Defendant all reasonable legal fees and 

expenses incurred by their attorneys. 

E. That a permanent injunction be entered forever barring Defendant from 

contacting Plaintiffs. 

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F. That this Court enter an order with any other relief deemed just and proper. 

/s/_David Linde_______________ 

 David Linde 

David Linde #6209104 

The Fox Valley Legal Group, LLC 

1444 N. Farnsworth Ave. 

Suite 113 

Aurora, Illinois 60505 

(630) 898-6500 

(630) 405-6784 - fax 

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