QUESTION

Can I file for chapter 13 if the property that I bought has an unknown lien on it?

Asked on Sep 01st, 2012 on Bankruptcy - Florida
More details to this question:
My dad bought an apartment building in 2007. We now have some trouble making payments with the previous owner and now my dad has filed chapter 13. Due to this, his attorney said that there was a lawsuit against the property in 2006. What is the worst that can happen?
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7 ANSWERS

Bankruptcy Law Attorney serving Livingston, NJ
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You should be talking with the attorney who filed. It could be very serious.
Answered on Sep 12th, 2012 at 11:56 AM

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It depends what the lawsuit is for. You may have a claim against the title insurance company for not disclosing the lawsuit. I need to see the lawsuit to give sound advice.
Answered on Sep 12th, 2012 at 10:33 AM

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Bankruptcy Law Attorney serving Campbell, CA at Ellahie Law Firm
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Yes - unless the amount owed exceeds the Chapter 13 section 109(e) eligibility limits. Current limits are: Secured debts have to be less than $1,081,500.00 secured& Unsecured less than $360,525 as of 4/1/2010 Reproducing Section 109(e). Limits are adjusted for inflation every 3 years, *next adjustment 4/1/2013.* * * If the lien is properly filed and perfected and there is enough equity in the property to cover the lien than add it to the secured amounts, if there is no equity to cover the lien, add it to the unsecured amount. If it falls in between then you the part that the equity could pay gets added to the secured amount, the rest to unsecured. Also in a 13 you may be able to wipe it out if it impairs an exemption. Confused ? Do consult a lawyer.
Answered on Sep 11th, 2012 at 3:50 PM

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Securities Attorney serving Rochester, MI at Olson Law Firm
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The worst that can happen is the bankruptcy case is dismissed and you lose the property and there is a huge judgment entered against your dad. I recommend that you hire an attorney right away to sort through this for you.
Answered on Sep 11th, 2012 at 2:48 PM

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Bankruptcy Attorney serving Phoenix, AZ at Law Office of D. L. Drain, P.A.
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That is a question that your dad needs to ask his attorney. Make sure the attorney is very experienced in chapter 13 bankruptcies.
Answered on Sep 11th, 2012 at 2:36 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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I am not certain of the facts you are presenting. Was there land contract entered into by both you, in which case your father is discharged but you are still liable. Really you should see an attorney, explain all of the details and get firm advise. It is cheaper to do it right the first time than to correct it later. Additionally you should be engaging your own counsel, your dad's attorney represents him, and NOT you.
Answered on Sep 11th, 2012 at 2:11 PM

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Criminal Defense Attorney serving Deltona, FL at R. Jason de Groot, P.A.
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Your father should hire an attorney. You will not be able to get adequate answers on the internet. An attorney has to go over everything in order to advise you properly.
Answered on Sep 11th, 2012 at 2:00 PM

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