As a Hollywood bankruptcy attorney, I can tell you there might be a way to eliminate the past due association fees. It is also possible to eliminate the second mortgage. This depends on whether your home is worth less than the balance of the first mortgage.
You definitely must resolve the issue of the association because they can foreclose.
As a Hollywood, FL bankruptcy attorney, I can advise you that it depends on the creditor and what you are able to offer. First, note that you might have a defense to the garnishment if you are head of household. You should look at this issue immediately. If you can offer a lump sum settlement, that would help to obtain a discount.
You can contact me at 954-967-9800.
You would have to file that separate lawsuit in the bankruptcy case called an adversary proceeding. Inability to re-pay is not enough to object, you would have to prove fraud. This would be very difficult. There is also a deadline to file the adversary complaint, 60 days after the meeting of creditors.
There are a lot of issues involved. Your mother needs to consult an attorney. A review must be made of all of the properties she currently owns so she can better understand her options. Note her non-homestead property would not be exempt from the claim of a bankruptcy trustee or creditors. The circumstances of the purchase for your cousin need to also be reviewed.
I would consult an immigration attorney and would not file a bankruptcy without that consultation. If your petition was denied by immigration, do you have any status? Dream Act candidate? You have been able to obtain credit and I assume you have a social security number.
As for the car, I do not understand that the lender would not take it back. (If you stop paying I am sure they will take it anyway). After repossession they would have a claim to sue on a deficiency after the car is sold...
As an attorney in Hollywood, I can tell you that it is not often cost effective to pay attorney's fees for a county court action. However, I may know some attorneys willing to charge a reduced rate for county court. You can call me at 954-967-9800.
Creditors will issue a 1099c for forgiveness of debt income. An IRS form 982 is a method of avoiding paying taxes on the 1099c. The form is not just for bankruptcy. The form can also be used if you are insolvent, if you have more debts than assets. (One problem is the assets include the value of assets that are exempt from creditors, but these assets must still be considered to determine insolvency.) You should consult with a tax professional.
In Florida, a recorded certified final judgment creates a lien against real property. Now it is true that technically there is no lien on homestead.. However, when you sell or refinance, the title company will require a method to verify that the judgment lien did not attach to the homestead real property. So a motion to avoid judgment lien should be filed during the bankruptcy case. This does create additional work and an attorney would be expected to charge extra for this service....
This sounds like your were served with a notice to appear in a small claims case. You can appear and try to negotiate a settlement or dispute the debt and request a trial. It is up to you whether you want to retain an attorney.
I agree that the trustee likely will abandon the property, but the property is not abandoned to the lender. Property that is abandoned by the trustee remains your property until the property is foreclosed, sold, or a quit claim deed is accepted. You would remain liable for any association fees or if there is a slip and fall on the premises. You could be responsible to the city's code enforcement for unmowed lawn or similar lack of care of the property.