Road Home FAQ

What is the Road Home Program?

The intention was to help survivors of Katrina and Rita in Louisiana after the storms. What started out as potentially one of the biggest modern initiatives to rebuild in the United States has become a threat to thousands of families that could lose everything from being sued by the very people who are supposed to take care of them.

Why is the Road Home Program suing?

The contract that every Road Home participant signed has numerous different requirements on how the money provided is used. The Road Home program likely believes that you misused those funds, and therefore is trying to take them back. However, what they define as ‘misuse’ can be anything but. They might try to say that waterproofing your home, rather than elevating it, is ‘misuse’ of the funds, even if you were never given enough to elevate your home.

Road Home lawsuit considerations:

1. How much did you receive?

2. What were you able to do with the money?

3. How can you be sued if you did what they asked?

4. Do you have the option not to pay for this lawsuit?

What happens if you ignore this?

Being sued is not something you can ignore. From the moment you are served by the sheriff, you are on a timer to respond. If you do not respond or find representation within 15 days of being served, your case will go into default. This means that you automatically lose. You would owe both every dollar Road Home is trying to get from you and all of their legal fees. If you owe this money, they will try to collect, whether that means placing a lien on your house, garnishing your wages, or repossessing your belongings.

Should you default and declare bankruptcy?

Bankruptcy is not a bad thing. In some situations, it is a powerful tool for eliminating debt. However, it is an option of last resort. Rather than defaulting and allowing Road Home to take your money, it would be better to fight them and avoid bankruptcy entirely. By fighting, you could avoid the difficulties and costs associated with bankruptcy, and never incur the debt in the first place. Do not be convinced that you can’t win this. You can fight, and you can win.

What happens if you lose or default the case?

The government will require you to pay back the amount of your loan

• You will also have to pay for:

  • interest

  • costs

  • attorney’s fees

If you don’t do anything and forfeit your case, the government can:

• garnish your wages

• put a lien on your home

• ask to collect the entire amount within 30 days of winning

How do you know if you are being sued by the Road Home Program?

• If you received money from Road Home and are worried about them suing you too, but haven’t gotten served yet, you can try calling your parish clerk of court to see if there is a case filed against you.

• Whenever you get sued, the Sheriff will deliver a copy of your lawsuit to you, also known as a petition.

• This procedure is called service of process. Once you are served you only have 15 days (including the weekends, but not holidays) to file a document called an Answer.

• If you don’t file in time you can be defaulted.

Why is the Road Home Program suing now?

In most states the time that a person has to act on a case legally is called statute of limitations. In Louisiana this is called liberative prescription. Most Road Home contracts specify a time for completion to be in compliance. From that date they have a set timeframe to file a lawsuit. Road Home gave out billions of dollars to hundreds of thousands of people until 2018. They have a good amount of money to sue for and plenty of people to try and get it from.

Glossary:

Book a free consultation to learn more information at (504) 226-2292.

Term: Road Home Program

Source: Road2La.org 

Article: Quote from Christopher Szeto by WWLTV 

Definition: Assistance grant for Hurricane Katrina to help Louisiana residents return home

Example: Even though Ms. Toussaint raised her house with the money they gave her, she was still sued by the Road Home program for not elevating. 

Term: Petition

LA Revised Statutes: RS 13:4864

LA Code of Civil Procedure: CCP 891

Definition: A formal request to court asking for a ruling.

Example: When you receive a petition from the sheriff you are on a timer to respond.

Term: Service of Process

LA Code of Civil Procedure: CCP 1291, CCP 1292, CCP 1293, CCP 1313, CCP 4543 

Definition: The official guidelines for how someone is notified about a lawsuit is called service of process.

Example: When someone gets a letter from the sheriff that they are going to have to go to court, they have been served.

Term: Default

LA Revised Statutes: RS 10:9-609, RS 10:9-610 

LA Code of Civil Procedure: CCP 1701, CCP 1702, CCP 1702.1, CCP 1704, CCP 1843, CCP 4904, CCP 4921 

LA Code of Criminal Procedure: CCRP 884 

Definition: A judgement is defaulted when it is upheld upon a defendant who has not pleaded in a timely manner.

Example: If someone does not respond to being served to a lawsuit, they will default and lose. 

Term: Answer

LA Code of Civil Procedure: CCP 1001, CCP 1002, CCP 1003, CCP 1004, CCP 1005, CCP 1467, CCP 4657 

Definition: An answer admits or denies the allegations of a petition. 

Example: If you elevated your home and were sued by the Road Home Program, The Law Office of Christopher Szeto can file an Answer on your behalf that you met the requirements of your contract.

Term: Liberative Prescription

LA Civil Code: CC 3447, CC 3505 

Definition: The inability to bring a lawsuit into court for a matter after a certain timeframe.

Example: Road Home is suing a bunch of people now while they still can before liberative prescription comes into effect. 

**Disclaimer: This content is not legal advice and does not create an attorney client relationship.

If you are seeking assistance from a lawyer in New Orleans, please book a free consultation at (504) 226-2292.