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Susan Schmeidler Blum
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Susan Blum’s Answers

149 total


  • Foreclosure vs Deed in Lieu

    We are currently in the chapter 7 process. We didn't include our house in the BK, but have decided we need to let it go. Is it too late to have it included in BK? If we could include it would it be the better option? We're concerned that a...

    Susan’s Answer

    As the other attorneys stated, the questions you posed are somewhat confusing, but I will speak generally about the process and hope that will help. 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 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.
    If you wanted to keep the home (which you said you did not), as long as you stay current and continue making payments on time - "retain and pay" - you would be able to do so. In your case, where you want to move on from the home and surrender in the bankruptcy, 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. Some creditors would require you to try to go through the modification process first, others won't. While this is a less expensive option for the lender, it's not something that they do readily. You can certainly 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.
    Definitely speak with your attorney to clear up whether your reaffirmed the mortgage.

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  • I live in Pennsylvania and I am legally separated from my husband. Can I be sued over my husband's credit card debts?

    I have filed for divorce in 2012. Was contacted by a person saying that they are going to serve me with a legal summons for a civil action for a credit card that was solely in my husband's name. My name was not on the card at all. He quit paying o...

    Susan’s Answer

    If you are not a co-debtor on the credit card debt then the creditor should not be able to come after you to collect on the debt. If you have a separation agreement and it addresses issues of debt and who is to pay, then both parties would need to abide by that or face possible contempt actions. However, if the debt in question is only individual debt for your husband then you would not be responsible for paying it and could not be sued for failure to do so. This is something that you would want to make sure to discuss with your divorce attorney.

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  • I am filing bankruptcy chap 7 & will include my condo which I consigned on, is that OK?

    My ex boyfriend and I purchased this condo together he is the primary. I am filing chapter 7 and want to include the condo and the car that I consigned on as well. The condo is currently in active foreclosure and I am being hit with a bank levy fr...

    Susan’s Answer

    Filing Chapter 7 would allow you to discharge your personal liability for the condo and the car. The co-debtor would still be responsible for these debts. The levy that the HOA has against your bank account would be released once you file the Chapter 7 and all PRE-petition HOA fees would be discharged. However, until the condo is actually foreclosed on you would remain responsible for any post-petition HOA fees. If the co-debtor is still making the car payments then he will be able to keep the car as long as he stays current. However, if the car is repossessed by filing the bankruptcy the creditor could not come after you for any deficiency, as the loan would be discharged as to you in the bankruptcy.

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  • I neglected to close joint credit accounts during or after my divorce (Mar. 2012) Ex charged $8800 and filed Ch.7. What to do?

    I was not aware that my ex was using this account until I checked my Chase account online. At this time, I asked him to remove me. He said that he did but Chase says he never completed the process which involved paperwork. Our divorce decree st...

    Susan’s Answer

    If one is a co-debtor, they are responsible for the debt even after the other co-debtor files bankruptcy. It sounds like you need to discuss this situation with your divorce attorney to determine if your ex-husband has violated your divorce decree and, as such, file an action against him in civil court.

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  • MY HUSBAND AND I BOTH HAVE CREDIT CARDS AND BOTH ARE IN OUR OWN NAME

    WHEN ONE OR THE OTHER PASSES AWAY ARE THEY RESPONSIBLE FOR THE OTHERS DEBTS?

    Susan’s Answer

    You are not responsible for your husband's debts, as long as you are not a co-debtor. This is true even if one dies. However, a deceased person's estate might need to pay off creditors prior to distributing any inheritance.

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  • Will fileling bankrupcy stop the leans on our house

    My parents divorsed a few years ago and they own a house but through all the debt my dad put them in there are leans on the house. My mother and I live here and I would like my mother to file bankrupcy to stop any leans. So i can fix the house for...

    Susan’s Answer

    There are just too many details that are unknown to be able to answer on this forum. You should contact a local bankruptcy attorney; many offer free consultations.

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  • I would like to know if a part of a student loan could be forgiven.

    husband went to school for 2 things that were in relation to each other. He found out he had a medical issue before he finished school and could no longer do one of the things he was going to school for. the loan company states he is responsible ...

    Susan’s Answer

    If there is an extreme hardship, student loans may be discharged in a bankruptcy. However, it is extremely difficult to meet this hardship threshold and in only those rare and extreme circumstances are student loans discharged in bankruptcy. To assess whether there is a hardship, the court would look into one’s future ability to work and earn income. Age is a major factor in this analysis, as is ability to work (not ability to find work).

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  • What can be done if a utility creditor cuts off your services after getting knowledge of your bankruptcy through your attorney?

    I filed chapter 13 and at the time forgot to add a past due utility to my case.I then informed my attorney who notified the utility and they stated they had what they neded and would cancel thst partvand sent me a bill for what I owed after that t...

    Susan’s Answer

    You have an attorney for a reason - the attorney should be discussing the situation and your options with the utility. If a schedule needs to be amended to include pre-petition debt, then your attorney should do so.

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  • I am going through a divorce and my soon to be Ex Husband is filing Bankruptcy , what should I do?

    My husband left me and our two children for another woman. She filed bankruptcy last year and now he is filing bankruptcy. We are still married and going through a divorce. I live in our family house with our two children (7 &12). What will happen...

    Susan’s Answer

    There are too many details about your situation that are not known, so it's difficult to provide appropriate advice. You should speak to your divorce attorney ASAP about the possibility of your estranged husband filing bankruptcy. You'll need to understand how the divorce will deal with joint debt and the marital property. If your husband files bankruptcy and there is joint debt (including a mortgage) then you would still be responsible for the debt.

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  • Can I get out of a $3000 waiver to convert my chapter 13 bankruptcy to a chapter 7.

    Unfortunately I signed a waiver if I changed my 13 to a 7. The lawyer wants $3000. from me. Well I lost my job and am 69 years old and on SS. Is there any way I could get out of this waiver???

    Susan’s Answer

    You'll need to pay an attorney for services rendered, whether its to convert your case or dispute the fees owed to the original attorney. You should talk to your attorney first to see if something can be worked out.

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