Pre-Foreclosure Filing V.s. Post-Foreclosure Filing -- Any Difference

[mkuki]

My property is in pre-foreclosure in GA...with courtsteps auction on 1st Tueday of the month.

My lawyer says it makes no difference if I file before the sale or after...so I'm thinking...really??...so here goes

a.) If I file before the sale, the ENTIRE mortage (which makes up 65% of my debts) will be included in the filing.

b.) If I file after the property is sold (and assuming the bank sells @ near what my balance is), wont that reduce my debt to the bank, hence reduce the entire total debt to creditors?...making it harder for me to file for BK?

[Tbornetun]

The amount of debt you have has no bearing on whether or not you can file bankruptcy. You can file on $10,000 or $1,000,000. It makes no difference.

[Frshstart09]

I am in a similar situation. However, my attorney stated that it was better to file BEFORE the foreclosure because of the secured debt.

[justbroke]

As far as what you can discharge, it doesn't matter when you do it (being hypertechnical about it). However, it's better to surrender the home as part of your Bankruptcy filing because the process is more streamlined! At least, that's my opinion.

[DeadManCrawling]

If you are relying on expenses from the home to meet the Means Test, you need to file before foreclosure is complete.

Filing BK also stops the foreclosure process and should give you more time in the home to save money for later.

If the deed is owned by the bank, they are responsible for the place and any expenses to keep it maintained. Therefore, you would not be able to use them on the means test.

Some districts do not allow you to use expenses from a home you are surrendering, but most do.

[mkuki]

Deadman...so If I want to claim the federal exemption $10,250(?), I have to ensure I file before the courtsteps sale? ..say, 1 day before? i.e. June 1st?

Also, If I am filing in MA, how quickly will the filing be used to stay the property?...not that I care for the property anyway. I am willing to let it go since I dont live there anymore.

FYI...I am barely squeeking under the means test for a family of 4 (under by $300)

[justbroke]

Deadman...so If I want to claim the federal exemption $10,250(?), I have to ensure I file before the courtsteps sale? ..say, 1 day before? i.e. June 1st?

Technically, you have to file before the new deed is recorded! In some States, the deed isn't immediately recorded.

The best thing to do is to file at least one day in advance of the sale, or before the actual sale is scheduled to start (e.g. the sale is at 9AM.... file at 8:00AM).

Also, If I am filing in MA, how quickly will the filing be used to stay the property?...not that I care for the property anyway. I am willing to let it go since I dont live there anymore.

Usually after the 341 Meeting of Creditors.