Michael Scott Noble's Answers

I sold a property on an AITD a few years ago and the buyer is now filing a Ch 13 BK -- I worry I might be "crammed down."

The owner's bk will not discharge your obligation on the mortgage. You have to file your own bankruptcy to do that. If the owner files a motion/action to value the property and shows your lien is fully unsecured, then your debt becomes unsecured and shares with the other unsecured debtors on funds paid through the chapter 13. So your only way to keep control is to fight the motion, but that doesn't sound viable either. In some districts you keep your mortgage until the plan is completed....

6 people marked this answer as helpful

We filed bankruptcy separate my husband and I in 2003 and 2005, we lost our job in the downturn , can we file again?

If you filed a chapter 7 before, then your husband could file a chapter 13 case soon. He would have to make monthly payments for at least 3 years. The payments could be as low as around $100. He would then be able to discharge his debt. You could file a chapter 13 in 2011. Your husband could file a chapter 7 in 2011 but you would have to wait until 2013. At that time you could discharge all of your debt if you qualified in about 3 months time. If you are not sued by your creditors,...

2 people marked this answer as helpful

Foreclosure - 1st and 2nd mortgage with zero down - Collection

I believe they can try to collect, but it is only a collection agency trying. Until they sue you, there is little they can do other than call or write. They don't often sue. You may consider a bankruptcy to both restore your credit and stop collection action. Good luck.

2 people marked this answer as helpful

Disabled, 100k unsecured indefault. married, spouse makes 70k. 2nd mort in default. will we lose our home if I file alone.

The problem with your second mortgage will probably not be solved in a chapter 7 bankruptcy since the 2nd can foreclose and recoup their money even if you homestead your home. You could repay the amount you are behind on the 2nd over five years in a chapter 13 bankruptcy and probably get rid of your credit card debt without having to pay anything to them. This scenario depends on what you can afford to pay, but if you pay the 1st and 2nd, I don't expect you would have anything left to pay the...

1 person marked this answer as helpful

Upside down in Folsom - assets dwindling fast, should I walk away, declare bankruptcy or what?

You allowed to keep around $21,000 in the bank if you do not have much of anything else with equity. The anything else I refer to is $3,300 of equity in a car, $1,350 of jewelry, all of your household goods as long as each item is worth around $500, your retirement, etc. This also assumes you have no equity in a house. It changes dramatically if you have equity in a house which you may want to remember after you finish reading my little essay. You do not say how much your cars are worth,...

1 person marked this answer as helpful

The only debt I have are the mortgages for my 2 houses. Can I keep both of them if I file for BK?

The is usually no way to lower your mortgage payment unless you negotiate with your lender. Some lenders are willing to lower your payments. The main exception is when you have a second mortgage on your residence that has no equity. That can be stripped off in a bankruptcy to some extent depending on what chapter you file. Also you can lower the payment on a second mortgage for a rental if there is only a little equity. These kind of questions involve some of the more complicated...

1 person marked this answer as helpful

I have S-corp business - only debt is 2 cc & LOC (all are personally guarant). IF declared B/K - will I be affected personally?

I very rarely advise a small corporation to file bankruptcy. It is a separate entity and if it is bankruptcy, you can just walk away. Walking away often means personal responsibility for the corporate debt and that could mean personal bankruptcy. So try looking at that way and see what makes sense. Good luck!

1 person marked this answer as helpful

Bankruptcy or CC settlement. Any other options?

Unfortunately, those pretty much are your options. Even if you pay the $5,000 your credit report will still show late payments. If you wait, you will probably get a 25% offer. You may have time to save the $2,500. Because of all that, I would take the credit hit and ignore the collection company, and not worry about paying at all. At least you are $5,000 to the good. Your other cards will likely up your interest and lower our available balance. Bankruptcy is probably the only way to...

1 person marked this answer as helpful

Can the 1st or 2nd Mortgage company garnish my wages in California if my house went into foreclosure??

They might be able to, but rarely do. They have to sue you first however. If they sue you, you can file bankruptcy to stop them and also restore your credit. Good luck.

1 person marked this answer as helpful

In California - Chapter 7 vs Chapter 13 bankruptcy, means test, etc.

It sounds like the attorneys all agree that in bankruptcy, he has about $57,000 of assets that are at risk. He can be protect around $27,000 of assets, so that leaves $30,000 that is at risk now plus whatever is left in his bank accounts and cash from the $13,000 disability settlement. He can do some planning and since he is unemployed, his 401(k) can be converted into an IRA. He can contribute some of his cash to the IRA and spend some on things he may need. So bankruptcy may be an...