Jeffrey David Curl’s Answers

Setting aside the issue of reaffirmation, the key here is that you state that you haven't made any payments recently. The moment you filed bankruptcy, an automatic stay was triggered. That means a lender may not repossess or force you to pay while this stay is in effect. If you want to keep a vehicle in chapter 7, however, you have to be current going into bankruptcy, and must continue to pay during and after bankruptcy. Once your case concludes and the automatic stay is lifted, the lender...

Yes, all assets and all debts must be listed, regardless of financing. Also, be aware that if you intend to keep your home and vehicle, you need to understand the concepts of retain and pay, redemption and reaffirmation. Lots of factors go into which election is applicable and appropriate to your circumstances. Probably a good idea to consult with counsel. Good luck. This information is not, nor is it intended to be, legal advice. This does not constitute the formation of an attorney-...

It is possible to cram down rental property, and for a below median debtor to pay it out over five years. Just remember, however, a cramdown requires that a debtor pay the entire balance of the property that is crammed down over the life of the repayment plan. Many debtors (and some attorneys) think that if you cram down a rental property to its current fair market value, the mortgage payment will be the same and just continue until the newly determined value is paid off over the life of the...

Banks just won't take back properties in this saturated market - it's a pain I deal with constantly. I don't think that just recording a deed would work because of the need for acceptance by the grantee...maybe, but I would not want to hang my hat on that argument. A couple of colleagues are trying other tactics, including filing motions to abandon the property and force conveyance of the deed back to the mortgagee, or filing an adversary proceeding following In re Pratt under the theory...

First, valuation of your rental property is not tied to your disposable income or the cash flow from the rental. The valuation is determined independently by the fair market value. This can be determined by a combination of comparables, appraisals and your testimony. You want strong evidence of the value if you are going to cram down a rental. Once the value is determined, you have to show that you have enough disposable income to sustain the required payment for the duration of the plan....

Sorry - added the link below.

If I understand your question, you want to file a motion or adversarial proceeding to value your home and mortgages to determine whether the second is unsecured, and can be "stripped off." First of all, this cannot be done in a Chapter 7 bankruptcy in California. It can be done in Chapter 13, if you otherwise qualify for Chapter 13. You are not personally liable to the second mortage/HELOC if you discharged it in a Chapter 7. However, you cannot both keep the home, and not pay the...

The discharge is not the issue with timing the sale of of your assets after bankruptcy. It's whether the trustee has abandoned your property. A debtor can receive a discharge, but the trustee can continue to adminster assets for days, months or even years in rare instances after the discharge. If the trustee still retains an interest in your property, it is not yours to sell, regardless of receiving the discharge. Did the trustee file a report of no distribution of assets? If so, then you...

As to your first question about whether a lien strip is available in Chapter 13 when the home is underwater. Yes, it can happen with an underwater home. In fact, the value of the home must be less than th first mortgage so that second mortgage is not secured by your home. So the home must actually be underwater to achieve a successful valuation of the lien, i.e., a lien strip. As to the judge rewriting the balance, is this a primary residence or second home? Other than removing the...

Unfortunately, HOA fees and assessments continue to accrue after your file bankruptcy. If you surrender a home in bankruptcy that has HOA dues, any dues and fees you owed at the time of filing bankruptcy (pre-petition) HOA dues are discharged. Any fees and assessments that accrue after you file (post-petition) are your responsibility until title passes. Title can pass by a foreclosure auction, purchase, deed in lieu of foreclosure, short sale and I'm sure other methods that escape me at the...