Questions Not Answered By My Attny!
I am not receiving clear concise answers to my questions regarding my
forclosure/bankruptsy from my attorney.
I am fileing a chapter 13 - due to the loss of a high paying job, emergency surgery
with no health insurance, cc debt, high house payment , property tax lein and 10K cc judgement.
The house is in foreclosure and the attny
is delaying fileing the BK due to backed up foreclosures and to give me a few months to live in the house and save money for an exit.
She gives me loose answers which leaves me with more questions, specifically regarding the trustee. I am not sure I understand what the trustee will do.
Work has been better and I have considered refinancing to keep it after the BK stops the foresclosure - is this possible? Will the trustee give me this option? Or- will he let me rent the house?
I need to have the cc debt and medical debt gone to be able to live but what about the unpaid property tax? Will that only be removed if the house goes into foreclosure - will I still have to pay it even though I file BK? I also had two buyers for the house and the M company refused to do a short sale even though the loss would have been minimal. I would love to be able to keep the house and still file the BK to relive me of the other problems. Any
suggestions, comments or answers would be very helpful! Thanks!
Bankruptcy There are three different types (and many chapters) of bankruptcy proceedings:
Chapter 7 - "Debtor Wipeout". The court oversees the liquidation of the debtors' non-exempt assets, distributing the cash proceeds proportionally amongst their creditors. Most of the time this is not the bankruptcy proceeding mortgagors/trustors will choose since their real objective is to stall off the trustee's sale as long as they can rather than liquidate everything.
Chapter 11 - This is a business reorganization proceeding.
Chapter 13 - "Debtor Workout". This is the almost-automatic choice of most mortgagors/trustors seeking to use a bankruptcy filing to delay the inevitable sheriff's sale or trustee's sale as long as they can. It's hypothetically possible to drag out a Chapter 13 proceeding for several years. The purpose of this proceeding is to give a "wage earner" time for rehabilitation . . a temporary respite free from the collection efforts of creditors. But a sharp mortgagee's &/or beneficiary's attorney can usually cut the delay down to about 90 days by persuading the court to grant relief from the automatic stay when the debtors are unable to keep current with their post-petition payments on their property.
If you file BK that will end your ability to refinance in the immediate future. The back property taxes normally are paid by the bank and will be included in the judgement award.
Quote:
On 2004-05-06 08:06, Sunshine59000 wrote:
I am not receiving clear concise answers to my questions regarding my
forclosure/bankruptsy from my attorney.
I am fileing a chapter 13 - due to the loss of a high paying job, emergency surgery
with no health insurance, cc debt, high house payment , property tax lein and 10K cc judgement.
The house is in foreclosure and the attny
is delaying fileing the BK due to backed up foreclosures and to give me a few months to live in the house and save money for an exit.
She gives me loose answers which leaves me with more questions, specifically regarding the trustee. I am not sure I understand what the trustee will do.
Work has been better and I have considered refinancing to keep it after the BK stops the foresclosure - is this possible? Will the trustee give me this option? Or- will he let me rent the house?
I need to have the cc debt and medical debt gone to be able to live but what about the unpaid property tax? Will that only be removed if the house goes into foreclosure - will I still have to pay it even though I file BK? I also had two buyers for the house and the M company refused to do a short sale even though the loss would have been minimal. I would love to be able to keep the house and still file the BK to relive me of the other problems. Any
suggestions, comments or answers would be very helpful! Thanks!