Need to Keep House ~ Getting Ready to File

[FreshStartin08]

Hello, I'm on the new side posting but I've done tons of reading. I am in the process of getting my market analysis done and having it sent to the lawyer getting ready to file Ch. 7. I've put this off for a few weeks because I've been frozen with terror over the possibility of losing our home. I stay home full time with two disabled children and my husband and brother in law work full time.

Anyway, I was told by the real estate agent that even if the house values "high" that we have SO many things wrong with our house (leaking basement, bad roof, 29 year old furnace, mold problem) that they would never take the house because our mortgage is 170K and we owe $165K. If the house came in at 200K even she told me it would be OK because the lawyer can "take off" repairs that would need to be done and that the trustee will know that so much money would have to put in the house to make it marketable that they wouldn't take it.

Does that make sense? Sure, I know it almost begs to say why do WE even want to stay here but it's very hard to explain what it takes to get two disabled children embedded in school, doctors and therapy and the thought of moving, which we can't afford anyway, is literally impossible.

In other words, we live in a state (MD) that doesn't have a homestead exemption. Therefore, the lawyer said that the trustee won't sell if the debts can't be paid by selling. Is that true?

The lawyer needs $1000 to start and I'm going to have to rob Peter to pay Paul and I don't want the mortgage to get late in order to pay the lawyer. This is so stressful and I haven't even filed yet. Do you know how long it normally takes from the time you pay the lawyer until they file? Thanks for reading all this. I appreciate the time people put into this forum. It's nice to read all the posts from people who are done

[FreshLikeADaisy]

FreshStart, what your real estate agent told you was absolutely correct: just because it values high on paper doesn't mean that you can't submit a lower estimate to the court based on needed repairs, etc. If necessary, the trustee will ask for supporting documentation, so definitely have that available (home inspection, repair estimates, etc) before filing.

Quite frankly, you're worrying too soon: unless your basic estimate comes in high you don't even have a problem yet. Don't get me wrong, I completely understand, I'm a chronic worrier myself, but I just wanted to point that out to you. This could be a tempest in a teapot.

As for how long it takes to file, that depends *entirely* on the atty. Some people here have gotten filed within the week, others have waited literally months because their atty was already backlogged and misrepresented how long it would take them to get around to their case. Sure, it only takes a couple days to file, but not if your atty is already four months behind. So if that is a concern for you, be sure to address it with the atty before signing a retainer.

A couple words of advice for you: I think you should see another atty or two BEFORE you retain one. Most initial consults are free, and I think it would do you some good to ask more than one atty before you file. Also, I think you should get one of the books on Ch7 (the link to the one I like is in my sig, but there are other good ones too) and learn the process a little better, so that when you do decide to file, you're much better prepared to ask the right questions, to know when something's not right, and to have reasonable expectations of the various timelines involved. You won't be sorry you spent the $$$ on the book, I guarantee you!!!

Best wishes to you and yours!

[FreshStartin08]

Thank you for your reply. It was very helpful and put me at ease! I guess the stress even before filing can bring one to worry too much. I will focus more on getting a second opinion legally and going from there. I'm very interested in the book, that's for sure.