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Susan Schmeidler Blum
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Susan Blum’s Answers

149 total


  • Chap 7 BK filed 5/15/13; current with 1st Mortgage. BofA sold mortgage to Green Tree. BK specifically said I wanted to keep home

    My mortgage with BofA was sold to Green Tree effective 6/1/13. I filed for BK for all debt and reaffirmed that I wanted to retain home. Heloc was forgiven in 10/2012. I did not know BofA was selling mortgage until after BK was filed on 5/15/12. Sh...

    Susan’s Answer

    When you file bankruptcy all of your debt is included. You can choose to remove debt from the protection of the bankruptcy umbrella by reaffirming the debt. It is typically not recommended and not necessary for one to reaffirm a mortgage - this is something that you should speak with your attorney about. Assuming that you will NOT reaffirm your mortgage, your personally liability to the mortgage will be discharged with the bankruptcy; however, the lien against the home would still exist.
    If you wanted to keep the home, as long as you stay current and continue making payments on time - "retain and pay" - you would be able to do so. The retain and pay option does not change whether your loan is with Bank of America or Green Tree. Your attorney is correct in saying that you will be fine as long as you stay current and continue making payments on time.

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  • Can creditor put a lien on my home while I'm in a chapter 13 plan? If so can it be removed?

    I am currently in a chapter 13 plan. I attempted to refinance my home and a title search was done. It revealed a lien on my home from a credit card company. Before I filed bankruptcy I received a letter from them saying they intended to sue but ...

    Susan’s Answer

    When was the lien placed against your home? If the creditor was notified of the bankruptcy filing and the lien was placed after the bankruptcy was filed then there would be a violation of stay issue. In that case, I am sure the creditor would have no issue with quickly removing the lien! If this was a lien that you were not aware about and existed at the time the bankruptcy was filed, then your attorney can file a motion to avoid lien. More information will be needed to determine the best action for your attorney to take.

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  • I had a chapter13 and was discharge on sept 4 2012 but we was told that we gave it up in court. becase of hard ship .

    It was never reaffirmed.My wife had open heart surgery in jan2013.My lawer told us not pay on property.And now we are five months behind.We made last payment in jan13.How can we get it back and keep it before they forecloser on property. mortage i...

    Susan’s Answer

    I am not clear about what your exact scenario is, but will answer generally, while you should speak with your attorney about the specifics of your case and what you need to do in order to save your home. It is a good thing that you did not reaffirm the mortgage because your personal liability for the debt was discharged in the bankruptcy. However, as long as you stay current and continue making payments you will be able to keep your home. If you are delinquent with your mortgage payments, you can either become current (I know difficult given the amount of money you would immediately need to come up with) or you can try to work with the lender for a modification (which likely won't be easy as well). The lender will not foreclose on your home as long as you are current, so that would be the surefire way of keeping your home.

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  • Filed for a modification twice and turned down. I have now filed Chapter 13 and it was approved.

    All debt was wiped out except for the back mortgage payments, of which I am now paying to the trustee at 31% of my gross. What happens now with regards to getting my mortgage modification. I have equity in my home.

    Susan’s Answer

    You should speak with your bankruptcy attorney about the best strategy to take with regard to the modification and bankruptcy. I'm not sure what you mean by "All deb was wiped out...", as you won't get your debt discharged until you complete the Ch 13 payment plan. While you can work out a modification while in a 13, you would need to amend the plan and schedules accordingly. If the Chapter 13 was filed only for the point of saving your home, then the modification could protect you if the arrears were put on the back of the loan, making the Ch 13 unnecessary. All scenarios that your bankruptcy attorney can walk you through.

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  • What happens to a residential that expires after filing chapter 13 petition?

    from New Mexico

    Susan’s Answer

    With leases in a Chapter 13, you have the option to reject the lease or assume the lease. For a lease that expires after a Chapter 13 plan was filed and confirmed, you can re-sign that lease or walk away. Keep in mind that should a potential landlord run your credit when determining whether you would be a fit for the lease that the bankruptcy would show up on your credit report.

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  • Chapter 7 possible foreclosure

    We are currently in a chapter 7. The trustee determined that we owe money to the creditors. So at this time we are making payments over a six month period. He asked if we wanted to keep our home, which we stated "yes" at the time. However, we have...

    Susan’s Answer

    When you file bankruptcy all of your debt is included. You can choose to remove debt from the protection of the bankruptcy umbrella by reaffirming the debt. It is typically not recommended and not necessary for one to reaffirm a mortgage. Assuming that you did NOT reaffirm your mortgage, your personally liability to the mortgage will be discharged with the bankruptcy; however, the lien against the home would still exist.
    In your case, where you want to move on from the home and surrender in the bankruptcy, as long as you did not reaffirm the debt you will be able to move on without owing anything for the mortgage. The sooner the house is out of your name the better, since you are still responsible for it (insurance, HOA, etc.) as long as the property is in your name. There is no telling how long the foreclosure process would take. If you are still in an active bankruptcy, the lender would need to file and be granted a motion for relief from the automatic stay, and then begin the foreclosure process again. You could try to speed up the process by offering to sign over the house to the lender by doing a deed in lieu of foreclosure. You can request from the lender that they initiate the deed in lieu process instead of hanging around for the foreclosure.
    Another thing to keep in mind. Because the foreclosure process could take a long time, you could continue staying and maintaining the home while it plays out, and live rent free.

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  • Would a debt collector take cars that are 10 years old or older with high mileage?

    Collector granted a judgment. But I have no bank account, no job. Drawing Social Security in a few months. One car is 10 years old (197K miles), the other is 16 years old (167K miles). The Average Trade-in Value on NADA.com is just over $900 for ...

    Susan’s Answer

    For all the reasons stated by the other attorneys, it is extremely unlikely that your cars would be levied - they would be safe from any repossession. Likewise, once you start drawing your social security, this income would also be safe from the reach of any creditor and could not be garnished. Without an income or a bank account, which are the two ways that a creditor would garnish your funds, it appears that you might be "judgment proof." That being said, filing bankruptcy might be an option for you if you have a significant amount of debt and want the peace of mind that a bankruptcy discharge would bring.

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  • How do I get help for my daughter when Wells Fargo will not tell where her money is when she has made all her Mortgage payments

    she filled chapter 13 to keep them from getting her home but they still say she is $10.000 behind

    Susan’s Answer

    Your daughter should speak with her attorney, and her attorney can follow up with the bank to determine what payments were received and applied. In addition to speaking directly to the lender about the payments for the arrears and all post-petition mortgage payments, her attorney can see on-line how the trustee has been applying these payments and walk through that with your daughter. Your daughter can help this process along by gathering proof of all plan payments and post-petition mortgage payments, so it is clear from the Debtor's side what payments were made and when. Your daughter can also access her Chapter 13 payment information directly by longing into the National Data Center website.

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  • How do I read the information listed on the National Data center for my chapter 13? $4000 balance on hand paying $850 per mo.

    Under the claim summary tab I am confused about the flowing terminology across the heading of the list: %of claim to be paid claim amount principal paid interest amount scheduled amount principal owed monthly payment interest rate ...

    Susan’s Answer

    Your questions are valid - with all of the headings and scheduled/unscheduled and payments/percentages listed with your case it does get confusing. Spend some time discussing your case with your attorney: you both can be looking at the same screen shots and you can be walked through who you owe, who has filed claims, how much you are expected to pay over the life of the plan, how much has been disbursed already, etc.
    For you to get the discharge for any creditor you must have listed them on your bankruptcy petition. Whether that creditor will be paid depends on whether a proof of claim was filed. If it was an unsecured creditor, then there would be no concerns if one did not file a proof of claim and therefore not paid. However, for a secured creditor or a student loan being paid in plan, you would want to make sure these creditors are being paid, even if that means your attorney filing a proof of claim on their behalf.

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  • I am about 4 years in a 5 year Chapter 13 and am about to be furloughed for 16 hours per pay day until the end of the fiscal yr

    Due to the loss of income, Is this enough to get my BK discharged early? I am going to make an appointment to talk with my lawyer but i just wanted to get some info before hand.

    Susan’s Answer

    This is a discussion you need to have with your attorney. There are options when one is in a Chapter 13 should there be a change of income: post-confirmation plan amendment; conversion to a 7; even a hardship discharge. Your attorney will need to evaluate your new budget and knows what the plan calls for with payments/percentages to your creditors. Your attorney can tell you what options would be available to you.

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