Need a new attorney ASAP...

[DebtStinks]

Do you plan to keep the house? Some folks do get in trouble when they surrender the house during the bankruptcy (depends a lot on they way your local courts rule on this). But the safe way would be to keep paying your mortgage though bankruptcy. You can also say that you plan to reaffirm but just don't execute the reaffirmation agreement. Then dump the house once you are discharged and closed.

I was going to do this but I've made sure that I can pass the means test even without the mortgage (waiting till June to file so my income drops off) so we stopped paying as of the 15th of this month. Plus most of the lawyers say it doesn't matter in this area that the court will allow the payments even if you file to surrender.

[DebtStinks]

I agree with Luci... you might need to cut your losses and get a GOOD attorney.

But don't let this current one off the hook easy! Make damn sure your means test numbers are correct. You might even hit a couple of free consultations and show them your means test and see if they agree with your numbers. Then take the means test in and ask your current attorney EXACTLY where it is in your means test that you made the mistake. Make him show you why you don't qualify! Odds are he won't even know and get defensive. But it would be worth the time to watch him squirm!

[liz417]

DS,

Yes, we intend on keep the house, we really can afford it, it's nothing fancy. We don't have any equity (thanks to the housing mess right now) in the house or vehciles. I am in California which has exemptions that we *could* use if necessary, other than that...no other assests.

Luci: I am the same way...kind of a 'numbers gal' No, I really can't afford to hire another attorney, but I PLAN on getting some of my $3375.00 payment back I'm sure this attorney will itemize everything he's done (and then some). I think I'll give the situation the weekend and then make a decision, I don't want to fire him strictly on emotions right now. I need to also convince my husband that although I don't have a "law degree", I KNOW what I'm talking about (that's to this site!)!

[DebtStinks]

My wife and I are in the Central Valley of CA and we bought our current house in 2005. We bought it for $356,000 and its probably only worth around $160,000. We are just going to dump it along with our other debt and start over. These cram downs are most likely going to come with a clause that will try to recover some of the cramdown amount if you ever do sell the house for a profit in the future. I just can't find any good reasons to not walk away.

[LuciluS]

Liz:

You've paid him. Demand he give you 'his numbers' in writing. Just a Thought.

Luci

[liz417]

Luci:
That's just it...I don't think he has any "numbers", he's just going by our income! Even if I did prove him wrong and he filed a ch 7 for us, I don't know if I'd feel comfortable to have him represent me at our 341. I would wonder "what else has he overlooked?"

DS: I'm in the I.E. and we owe appox. $260K and it's worth about (maybe) 230K, so we aren't too upside down, but there is no equity. Also, there are 2 homes on our block that are in foreclosure. I really wish this economy would turn around....

[DebtStinks]

Well the upside to no equity in CA is the exemption system 2 with the nice wild card. It's pretty nice compared to many states.

[albacore44]

Liz, I think I mentioned I don't believe that firm has been doing BK's very long. it very well could be he wants to take the easy way out and not push for a 7 if he thinks it will be extra work to prove worthyness to the UST. That firm is listed with my company also, they give a discount on fee's to be listed with large companies. i'm going to send you a PM to a large family firm that writes articles for legal consumer and seems to be on the cutting edge on lein strips etc I plan on going to consult with them. you may also want to get attourney name from relief13035, she is in your neck of the woods

[relief13035]

Luci:

DS: I'm in the I.E. and we owe appox. $260K and it's worth about (maybe) 230K, so we aren't too upside down, but there is no equity. Also, there are 2 homes on our block that are in foreclosure. I really wish this economy would turn around....

Hey Liz - we are definately getting hammered here in the IE!
Like you, we are fortunate to only be $30-40k upside down and are hoping to ride out this economy.

You have been here cheering me on, so now it's my turn to support you.

[DebtStinks]

$3375.00 is pretty high for a Chapter 7 in my area. Of the 10+ lawyers I spoke with only one was over $3,000 and the guy didn't know crap (his paralegal was good though). The fees I found ranged from $950 to $2500 for the most part. I went with who I liked the most regardless of price...but he charged a flat $2000.

Have home vaules held that well down in the IE... most of the central valley as seen our homes drop 50-60% of their value. It's pretty ugly up here.

[albacore44]

$3375.00 is pretty high for a Chapter 7 in my area. Of the 10+ lawyers I spoke with only one was over $3,000 and the guy didn't know crap (his paralegal was good though). The fees I found ranged from $950 to $2500 for the most part. I went with who I liked the most regardless of price...but he charged a flat $2000.

Have home vaules held that well down in the IE... most of the central valley as seen our homes drop 50-60% of their value. It's pretty ugly up here.

Yes, very bad. homes in my neighborhood that sold for $1m in 2006-2007 are now going for below $500K. Needless to say many are walking, and that is just accelerating the rate of decline.

[liz417]

$3375.00 is pretty high for a Chapter 7 in my area. Of the 10+ lawyers I spoke with only one was over $3,000 and the guy didn't know crap (his paralegal was good though). The fees I found ranged from $950 to $2500 for the most part. I went with who I liked the most regardless of price...but he charged a flat $2000.

We were originally going for a ch 13, that's why it was $3375. A ch 7 would be cheaper, maybe that's why he doesn't want to do it...

Thanks everyone for all your advice...I appreciate it

Hey, I noticed that one of the neighbors that home was in foreclosure (abandoned about 1-1/2 years ago) is moving back in today, good for them!! I hope they negotiated and lowered their mortgage (they bought during the "prime time" and their home is probably worth 1/4 of what they paid)!!! Maybe I should go ask them for a recommendation for a good BK attorney They really aren't in the "mood" to talk to neighbors, I noticed that they aren't making eye contact with anyone on the block, the are probably just embarrassed...
With this economy, I think there are more people that we live near, work with, etc. going through this mess...