Real Estate Law, Bankruptcy & Foreclosure

**Priapism** · 10-30-2007, 07:30 PM

I have two properties and am filing bankruptcy. I do not wish to keep the houses, but I do not want both a Bankruptcy and two Foreclosures on my credit. There seems to be conflicting information as to whether or not this will happen. My lender claims that as long as I continue to make payments throughout the Bankruptcy process, when my debts are discharged, there will be no foreclosure on the house. My bankruptcy attorney says there will be a bankruptcy and two foreclosures no matter what, and that its a waste of money to continue paying my mortgage for the next 60 to 90 days while we wait for my debts to be discharged.

Obviously I need to know the correct answer to all of this.

1) If you have two properties and you include them in the Chapter 7 bankruptcy, do you end up with 1 bk and 2 foreclosures on your credit?

2) Is there any merit to the statement that its dependent upon whether I continue to make my payments or am in default at the time my debts are discharged?

Thanks

**Priapism** · 11-01-2007, 12:44 PM

Does nobody know the answer to this question?

Simple: If you file Chapter 7 and have two houses that get surrendered as part of it, do you end up with 2 foreclosers and 1 bankruptcy on your credit ?

**REbuyersgroup** · 11-01-2007, 01:42 PM

I'm not a BK attorney, but know people who have filed for Bankrupcy and able to keep their homes.

Not sure about Investment property? They may make you sell your non homestead property and use any profit to pay back debt.

These may be one situation if the equity exceeds a certain amount. It was my understanding you could claim $125,000 exemption per owner, meaning if you are married, you could claim up to $250,000 in equity, and not have to use the equity to pay creditors.

Cars will either have to go back to the bank, or be crammed, meaning the bank must accept a lower amount.

Each trustee will treat people differently, there is no set rule. if you are truly in distress, they will see that and probably work with you, vs those who ran up all their credit cards just before filing.

All the best, seek a GREAT attorney. It will make a difference.

**Greg** · 11-02-2007, 05:19 AM

Legal questions should only be answered by attorneys and yours has already given you an answer. If you don't believe your attorney then you should probably be looking for a new attorney.

**Cedar City Utah Realtor** · 11-02-2007, 07:31 AM

*I AM NOT AN ATTORNEY!*

You can save your house by using the homestead exemption. Honestly though I don't know why you care about the differance between a bankruptcy and a bankruptcy + 2 foreclosures. Either way your credit is screwed for the next 3-7 years. (As it should be)

**REbuyersgroup** · 11-02-2007, 07:37 AM

Was the last comment necessary? I know former Millionaire's who are now living in apartments. Everyone can have a rough time in life sometime, maybe you will be next. You never know.

Just my 2 cents.

**Priapism** · 11-02-2007, 08:41 PM

Greg - you are useless. Dont post here anymore. If your logic was used this entire forum would be completely empty. Try learning what help and advice and support means. Every single question on this board is legal related. Read the name of the friggen forum: "Real estate law". Seriously, get a clue.

As for the rest of you - at no point did I say i wanted to keep my house. I asked a specific question which nobody answered. If you surrender a property during a BK do you have both a BK and a FC on your credit?

Im thoroughly amazed that nobody can give a simple "yes" or "no" to this.

**RachelP** · 12-04-2007, 03:46 PM

Well, if you don't believe your attorney...that's a red flag. Get another opinion from another attorney --not this forum

**Greg** · 12-05-2007, 05:09 AM

Originally Posted by Priapism

Greg - you are useless. Dont post here anymore. If your logic was used this entire forum would be completely empty. Try learning what help and advice and support means. Every single question on this board is legal related. Read the name of the friggen forum: "Real estate law". Seriously, get a clue.

As for the rest of you - at no point did I say i wanted to keep my house. I asked a specific question which nobody answered. If you surrender a property during a BK do you have both a BK and a FC on your credit?

Im thoroughly amazed that nobody can give a simple "yes" or "no" to this.

Get your head out of the sand and pay a lawyer for an answer. Oh wait you already did and now you don't like the answer so you come here hoping for some one to give you the miracle free answer.

In NC it is illegal for non lawyers to give legal advice. This law is pretty much the same everywhere. So any advice you get from someone who is not a lawyer is advice coming from someone who does not know the law or disregards the law.

And if you got some good advice how would you know. You are losing 2 houses. You apparently don't know what good advice is.

As for not posting here anymore. I have been posting advice on this forum long enough to not let dipsticks like you tell me what I should or should not do. Good luck with your foreclosures or bankruptcy.