I own 3 homes...One of which the rate is about to adjust, I cannot to subsidize the extra in payment. I tried to refi and mod.: I have been unsuccessful with both the r refi and the modification. I am now attempting to do a shortsale, but no bites yet. How do I protect the rest of my assets and 401k if the house is foreclosed upon?
Ralph’s answer:
I agree with attorney Kosyln. You should also keep in mind that if this is not your primary residence you are like to face taxable "Cancellation of Debt Income" (COD). To eliminate both the possibility of the lender seeking a deficiency judgment against you, and the IRS and FTB seeking taxes you may want to consider filing bankruptcy. Talk to a local bankruptcy attorney for further guidance.
This information is for educational purposes and is not intended to provide any legal advice whatsoever.
Is it legal for me to rent out a room after just filing for a Chapter 7?:
I just went from a Chapter 13 to a Chapter 7. Until recently I have rented out rooms as a Sober Living Home. Is it illegal for me to rent out a room after just entering the Chapter 7? I filed for the Chapter 7 the day before my house was to go up for sale (auction) by the Trust Company. I have heard that the Marshall can come to boot me out of the house as soon as 30 days have passed since filing. I have also heard that if there is a month to month renter in the house he has to be given a 90 day notice to leave (which I believe they do not have to give me any more than a 5 day notice). Since I am here also will I be able to stay through that 90 day period also?
Thank you in advance for any assistance
Ralph’s answer: The 90 day notice period is for a "qualified" renter. That is generally someone who is not a family member or friend. The rent agreement between you and the rent must be at "arms-length" meaning its truly negotiated as to rent and other terms. This may not apply to you, but if you suddenly "find" a renter just before of after eviction, its likely that the renter will not qualify for 90 day notice. You can read more about the protections for tenants in foreclosed properties at http://www.forecloseddreams.com/eviction-after-....
Can I be considered for chapter7 Bankruptcy, foreclosure+heloc+CC debt?CA atty help!:
I'm in foreclosure and my latest sale date will be end of Nov. I have moved out and rented. My total liabilites are following:
1st loan - $640k(+arrearages of ~$35k)
heloc - $120k(+lates of ~$8k)
credit cards - $48k
auto - $20k
My gross income is still decent at $7.5k/month.
With above info, do you think I can qualify for chapter 7 bankruptcy? How will bankruptcy affect me from finding new job later on? How about student loan, can I still get a loan?
CA attorneys, help! I'm from bay area and even my current job now is very uncertain.
Ralph’s answer: You are presumed not to qualify for Chapter 7 if your income is above California's median family income. However, this presumption can be overcome (rebutted) if you can show special circumstances (bankruptcy code section 707(b)(2)(B)(i)). Special circumstances include a serious medical condition or a call to active duty in the military. If you recently lost your job, your income as computed for the means test may still be too high (its the average of your last six months earnings) but the job loss could be a special circumstance qualifying you for Chapter 7.