Hello, I will be happy to assist you with your question. I am a real attorney and strive to provide the most professional service possible. However, I cannot provide legal advice - I can only give you information concerning the legal issues raised by your question. After receiving your answer, please let me know if you need clarification (or if I misunderstood and didn't address your question).

I am sorry to hear of your situation. I know it is extremely frustrating to have to deal with this as you were not on the Loan in the first place. Now you are required to spend a good deal of time and money fixing something that should never have been an issue.

ANSWER:

Since you didn't respond to the suit that they filed against you and your brother, they obtained a default judgment. You must address that judgment to obtain the relief you seek.

If you had answered their complaint petition rather than not responding, they wouldn't have been able to obtain the judgment against you. Nonetheless, you still have recourse.

To get the judgment removed, you will need to file with the court where the judgment was issued a "motion to vacate default judgment." The basis for your motion is that you erroneously believed you did not need to respond since you were never a borrower on any loan document and because even if you somehow owed any debt, that debt was discharged in bankruptcy.

You really need a local attorney to assist you with that process.

Until that judgment is vacated, it doesn't matter that you were not actually on the loan or even that any debt you might have owed was discharged in the bankruptcy. You have to get the judgment vacated first.

If I have misunderstood and there is no judgment against you, only a pending lawsuit, any response you file only needs to allege that you never signed any document making your personally liable to the lender for the property debt. You don't need any case law or statute to support that proposition because it is a basic principle of contract law.

You should also allege, though, that even if you did owe debt to the lender, it was discharged in your bankruptcy. You just need to obtain a certifed copy of your bankruptcy discharge. Assuming that your discharge was under chapter 7, you can also cite 11 U.S.C. sec. 727(b) in support of your proposition that any debt you might have owed was discharged.

http://www.law.cornell.edu/uscode/text/11/727

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what do I need to state in my Memorandum, that I have not signed the loan documents and that I am not a borrower.

Yes, that is exactly what you would state in your memorandum -- that you never signed any document obligating you to pay any debt associated with the property. Therefore, there is no legally enforceable contract by which they may hold you liable for any portion of the debt.

What they would be suing you on is a breach of your promise to pay for any part of the debt. In other words, it would be a Breach of Contract suit.

In Pennsylvania, a breach of contract suit requires the following elements: (1) the existence of a contract, (2) a breach of a duty imposed by contract, and (3) damages. J.F. Walker Co., Inc. v. Excalibur Oil Group, Inc.,792 A.2d 1269 (Pa.Super.2002).

If there is no contract, they cannot maintain an action for breach of the contract.

Please let me know if I can provide additional clarification. Your accept would be appreciated. Thanks.