QUESTION
Can I expedite the foreclosure so I can file for chapter 7 before Christmas, wait for the house foreclosure is over and stop paying the mortgage?
Asked on Sep 23rd, 2012 on Bankruptcy - Kansas
More details to this question:
I am married. My wife has no job. She has a spinal-condition that is getting very expensive. We're $10,000+ in medical bills, two months behind on our mortgage and with three kids we're flat on our faces broke. We've come to realize that a chapter 7 may be our best bet. I want to start fresh and give my kids a good life. I make half the means test average for my county. I think a chapter7 would be open-shut. What should I do about the house? Will they really be interested in my personal possessions in a chapter 7? I don't own much but my kids have some high dollar items that I'd rather not see them lose. Would my trustee really want to take what little I own? Can I have any idea on the cost of a chapter 7?
7 ANSWERS
You do not need to wait for foreclosure, you can even surrender the house in a 7 and the bank only gets what they sell it for. As for your possession, the trustee is looking for things that are valuable and unprotected. There are many exemptions that you can use to protect your stuff.
Answered on Sep 28th, 2012 at 1:11 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Sep 26th, 2012 at 2:02 PM
Daniel James Wilson
Every BK case is different and this is not legal advice on your particular case. One strategy I use is have client stop making mortgage payments. Then file BK. Done correctly this can buy you a year rent free. Then the BK discharges your debt on the house. Medical bills are dis chargeable. In any circumstance a foreclosure will not take place by Christmas. Unlikely trustee will take your children's possessions.
Answered on Sep 26th, 2012 at 2:02 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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You may want to explore a short sale or a regular sale if their is equity first. You can claim a number of exemptions in bankruptcy so you may be able to protect everything. The value is not the new value, but essentially garage sale value.
Answered on Sep 26th, 2012 at 2:01 PM
Things are rarely as open and shut as appear at first. You need to sit down with an experienced bankruptcy attorney such as me and come up with a plan that can set you on the road you want to be on.
Answered on Sep 25th, 2012 at 1:20 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Please read the pamphlet at my website about chapter 7. It will answer most of your questions. You already seem to know a lot, but it will help you understand the process. The filing fee went up to $306 for a chapter 7 and attorneys fees range from way too cheap to do it right to way to expensive, mine being in the middle, at about $1200, but I will negotiate.
Answered on Sep 25th, 2012 at 1:20 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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You can file Chapter 7 before foreclosure is completed. You can surrender your house in Chapter 7 but continue to live there until the foreclosure process is complete. You are able to keep your household goods. I suggest that you consult with a bankruptcy attorney to discuss the specific details of your situation.
Answered on Sep 25th, 2012 at 10:31 AM