When to file chpter 7

[robs47]

my house will forclose, should i wait till just before the sale date or after?

If i wait till after will i beable to add the forclosed home to the discharge. Goal is to stay in home as long as i can.

I want to wait until the bank ask me to move after the sale date move to apt then file.

But i want to able to take advantange of the discharge so i dont get 1099

[JRScott]

Depends on your total circumstances and the local rules around your area. You probably should seek 3-4 bk lawyers in your area and go over your situtation with them and see what is best. Most will give a free initial consult.

[robs47]

im in calif.

[AngelinaCatHub]

I would think having the house at the time of filing would aid you in your paperwork as far as you open debt. Otherwise you won't have that liability to offset any creditors, and your net worth may look more than it should. 'Hub

[robs47]

so i should move and file right before the sale date so the house is still a liability?

I have not received a NOD yet, so i have 3 months after i receive it then another 21 days after that before sale date.

My plan get NOD wait 3 months get sale date, move to apartment right before sale date. File ch 7 right before sale date.

how does that sound

[OhioFiler]

so i should move and file right before the sale date so the house is still a liability?

I have not received a NOD yet, so i have 3 months after i receive it then another 21 days after that before sale date.

My plan get NOD wait 3 months get sale date, move to apartment right before sale date. File ch 7 right before sale date.

how does that sound

Why would you move to an apartment before the sale date? If you file bk before the sale the scheduled auction will be cancelled and you'll be able to stay in the house for at least a few more months-----rent-free!

[robs47]

I would move because out here in calif discharge is taking longer. If im still in bk and they kick me out of the house i cant rent until the discharge is done.

otherwise i would stay. Just not sure how long the dischatg will take. Also this is a condo so i think the hoa will forclose first. already a lien on the condo.

[justbroke]

I would move because out here in calif discharge is taking longer. If im still in bk and they kick me out of the house i cant rent until the discharge is done.

Who said you can't rent until the discharge is done?

California or not, I haven't seen any foreclosure being done within 21 days of an expired period to cure (the date on the NOD).

You should stay as long as possible, and have your post-foreclosure housing arranged. I see absolutely no need to move now. I say this from experience. I moved and filed 15 days later. It did absolutely nothing but cause more headache, as I ended up moving back because I was able to strip my second mortgage (I'm in a Chapter 13).

When you file, the automatic stay would delay anything. You haven't even received an NOD yet, so this is really premature, if you ask me. The lender doesn't even have to take any action to foreclose either. So rather than a 120+ day period for the actual sale... it could be much much longer.

The discharge should have nothing to do with your housing situation. You can delay the foreclosure, if there ever is one, even longer by not stating your intentions on the condo when you file. You have 30 days from filing to declare your intentions.

So, add the 120+ days for the actual foreclosure process, plus the 30 days to state your intentions in your bankruptcy... you're at a minimum 150+ days. I would guess that it would be at least 180+ days becuase the bank would need to file a Motion for Relief from the Automatic Stay (RFS), wait 21 days for that, then file an Order granting the relief, then proceeding.

So we are easily at 180+ days.

The question is, again... why move early?

[Amy26]

And someone correct me if I'm wrong, but if he filed after foreclosure then he would have 2 negative dings on his file (bk and foreclosure) than if he filed before it happened he would only have one negative ding?

[justbroke]

And someone correct me if I'm wrong, but if he filed after foreclosure then he would have 2 negative dings on his file (bk and foreclosure) than if he filed before it happened he would only have one negative ding?

Absolutely. The problem with the foreclosure, is that it would probably show as a judgment, which can be there for 10 years. Judgments and collection items are the worst things on your credit report.

[robs47]

im not moving early. heres my situation,

im in calif.

HOA filed a lien and its been past 30days so now they (HOA) can forclose at anytime.

BOFA has not strted any forcloser either they can at anytime.

I have two credit cards that have sent me to collections, ive asked collections to prove the debt to buy more time.

Two other credit cards have not sent me to collections yet.

I read in order to discharge my codo i have to file right before the sale date or risk a 1099.

The apts Im looking at say I cant be in chapt 7 before i move in it has to be discharged.

So if i file right before the sale date I figure i can be in a apt. If i file right before the sale date and stay in the condo then I risk the discharge taking 3 to 6 months and im forced out with nowhere to go until its fully done.


My worry is collections will get a judjudgement beforem anyone forcloses and i will have to file early.....

[justbroke]

Have you had any consultations with bankruptcy attorneys?

[robs47]

yes she wnats me to file right before the sale date to avoid being 1099 and also cath all the back HOA fees.

If the sale date has no buyers it reverts back to the bank and they are responsible for the HOA fees at that point.

HOA has not proceed with forcloser, they may not I think its costly to them, but neither has the bank.

Its the collections that im trying to hold opff from becomming judgements

[justbroke]

yes she wnats me to file right before the sale date to avoid being 1099 and also cath all the back HOA fees.

If the sale date has no buyers it reverts back to the bank and they are responsible for the HOA fees at that point.

Good luck with the catch before the sales date. I have had no less than 6 sale dates come and go in a State which also has non-judicial (power of sale) foreclosures.

HOA has not proceed with forcloser, they may not I think its costly to them, but neither has the bank.

I think the HOA is your worst enemy as they have strong powers that put them in a superior position over your lender. I am surprise yoru lender hasn't stepped in and paid the back HOA fees, as the lender would not want to lose their secured asset over a few hundred (or thousand) dollars in HOA fees or taxes.

Its the collections that im trying to hold opff from becomming judgements

Why not file now? I just don't understand the whole picture.

[robs47]

What happens if I file now?

Nobody has forclosed yet.