Please help me with my story

[LSUTiger32]

Hey Congrats on filing. Are you feeling better yet?

Oh man, it's like a huge weight has been lifted. I really feel better now than I have in a long time. It's really amazing how quickly things got better just in the last four weeks. It still hurts and it's bittersweet but the relief is worth it. I just hope things continue to go smoothly. If so, we will be discharged Thanksgiving week and I will have plenty to give thanks for, specially our fresh financial start.

[want2save]

Some of the things the attorneys are requiring are mind boggling!!! Maybe there is a difference in States? My attorney did not ask for any credit card statements . I was required to send 2008 tax returns, bank statements as of the date of filing, copies of auto insurance, current mortgage statements, most recent real estate tax bill, and after the 341 the Trustee asked for statements of my IRA accounts back to one year prior to filing and through one month after filing. I also provided a statement as to my social security payments as that is now my only income. That was it. Date by which any objections by anyone must be filed is in September.

[LSUTiger32]

Some of the things the attorneys are requiring are mind boggling!!! Maybe there is a difference in States? My attorney did not ask for any credit card statements . I was required to send 2008 tax returns, bank statements as of the date of filing, copies of auto insurance, current mortgage statements, most recent real estate tax bill, and after the 341 the Trustee asked for statements of my IRA accounts back to one year prior to filing and through one month after filing. I also provided a statement as to my social security payments as that is now my only income. That was it. Date by which any objections by anyone must be filed is in September.

Well I have noticed with my attorney that she asks for a lot stuff to double check things and prepare me. For instance, the credit card bills she wanted to check the addresses to make sure the notification was going to the right place. The utility bills were for the 341 incase I have to prove it. She gave me everything back in a folder and so obviously a lot of it was to be prepared for the 341.

[LSUTiger32]

Need some serious help guys. I had 4 properties and I am surrendering three of them other than my personal residence. The one I kept I only kept because I owe a family member some money on it. I had some people wanting to live in it for a while but now their parents are going to co-sign to buy it! This is good news but now I think I may be in deep doo-doo. It's only in my name so according to the trustee it's all my money. It still needs some serious work to get it read to pass an inspection but they said they want to move forward now. I have no idea what to do. My attorney had said a while back I can do anything as long as I spend the money on living expenses. Well only Donald Trump has $25,000 worth of living expenses a week. Does anyone know how long I would have to spend it? This will obviously kill my 341, huh? HELP!

[LSUTiger32]

Bump for help, I think people are tired of clicking on my thread. I hate starting new ones.

[MSbklawyer]

Need some serious help guys. I had 4 properties and I am surrendering three of them other than my personal residence. The one I kept I only kept because I owe a family member some money on it. I had some people wanting to live in it for a while but now their parents are going to co-sign to buy it! This is good news but now I think I may be in deep doo-doo. It's only in my name so according to the trustee it's all my money. It still needs some serious work to get it read to pass an inspection but they said they want to move forward now. I have no idea what to do. My attorney had said a while back I can do anything as long as I spend the money on living expenses. Well only Donald Trump has $25,000 worth of living expenses a week. Does anyone know how long I would have to spend it? This will obviously kill my 341, huh? HELP!

Was the debt on the property you kept evidenced by a note and a properly recorded mortgage or deed of trust? If not, wouldn't the trustee be right -- that there was no lien on the property when you filed for bk? And that therefore, the sale proceeds would belong to the estate?

[LSUTiger32]

Was the debt on the property you kept evidenced by a note and a properly recorded mortgage or deed of trust? If not, wouldn't the trustee be right -- that there was no lien on the property when you filed for bk? And that therefore, the sale proceeds would belong to the estate?

Oh yeah, it has a loan on it right now for $63,000 and it has for 2 years now. We put $16,000 down in escrow to cover the first $16,000 in repairs and we've put no less than $10,000 since. We really aren't making anything. Now I am sure that doesn't matter, if there is money the TT is going to want it. The problem is that not all of it on this one is mine. The biggest reason I am re-affirming it is that it was the best of the properties as far as what was owed and it is with the bank that holds my primary residence. I was afraid to piss them off for fear of losing my home.

[fooked]

two things come to mind initially... can you hold them off on the purchase?

and if not, put money into an IRA?

[MSbklawyer]

two things come to mind initially... can you hold them off on the purchase?

and if not, put money into an IRA?

He's already filed, I think.

Long story short, LSU, with respect to real property, you can't just SAY that the ownership of it or the debt on it is not all yours and make it so. The legal papers filed on the property: the deeds, the deeds of trust, the notes, the mortgages &c are the ONLY thing that matter. If your family member loaned you the money with recording the proper papers to secure the debt, then the second you filed for bk, that family member became a general unsecured creditor.

[fooked]

oh, that's right... so essentially, the sale of the property wouldn't have any impact, right? or am I off base here?

[MSbklawyer]

oh, that's right... so essentially, the sale of the property wouldn't have any impact, right? or am I off base here?

The surplus (if any) from the sale of the property -- unless he can find some way to exempt it -- becomes property of the estate and is distributed to general unsecureds.

I don't know if I'm understanding the facts right either.

[LSUTiger32]

The surplus (if any) from the sale of the property -- unless he can find some way to exempt it -- becomes property of the estate and is distributed to general unsecureds.

I don't know if I'm understanding the facts right either.

I guess I am wondering a few things:

1. How long would I have to wait to sell it to have it not make a difference anymore? Discharge? Closing?

2. If I can spend the proceeds on living expenses, how long do I have to spend it? Louisiana exemptions suck so I am not sure what I would do as far as protecting it.

3. The other option would be selling it to my brother because he is the only one with the cash to get it to the point it will pass inspection and then let him sell it to it purchasers. I am not trying to hide anything here, the house is not worth what we are getting for it right now because right now it will pass inspection due to plumbing issues. (The plumbing is fine it works it just was not done correctly I found out recently. Most of it is minor but there are a few major issues as far as new code is concerned.) How would something like that work with the TT.....I put a value on the house but right now it is basically worthless since it can't pass inspection.

[backtoschool]

I guess I am wondering a few things:

1. How long would I have to wait to sell it to have it not make a difference anymore? Discharge? Closing?

2. If I can spend the proceeds on living expenses, how long do I have to spend it? Louisiana exemptions suck so I am not sure what I would do as far as protecting it.

3. The other option would be selling it to my brother because he is the only one with the cash to get it to the point it will pass inspection and then let him sell it to it purchasers. I am not trying to hide anything here, the house is not worth what we are getting for it right now because right now it will pass inspection due to plumbing issues. (The plumbing is fine it works it just was not done correctly I found out recently. Most of it is minor but there are a few major issues as far as new code is concerned.) How would something like that work with the TT.....I put a value on the house but right now it is basically worthless since it can't pass inspection.

Selling the house to your brother while you are in bankruptcy will definitely be a HUGE red flag to the trustee.

Any transfer of property to family members in the two years preceding bankruptcy can trigger close examination and the involvement of the us trustee. I had to fill out a form listing any property I transfered to family members in the last two years, including anything I sold to family members. Also, transfers of property is one of the questions that the trustee asks at the 341.

If you do sell the house to your brother, you will have to have a lot of documentation as to the market value of the house, whether your brother paid market value, etc. You can definitely NOT sell the house to your brother at under its appraised value. That will be a HUGE red flag for the trustee. This is what my lawyer told me, when I wanted to sell some video equipment and musical instruments to my brother. She used the house example and said to be safe, we would need to apply the same standards to the studio equipment I was selling my brother. I decided to just sell it on craig's list instead.

[LuciluS]

Maybe I've lost my one os 2 marbles left & that possibly could be that way today, as I couldn't sleep & ended up taking extra meds & now I'm a tad bit woozy.

BUT you stated it needed a lot of repair work to pass Inspection. Unless these people who want to buy this house are paying cash, seems as though You (LSU) are going to pay for the repair work to pass inspection. Am I on the right track?

If so, get the repairs done After your 341 meeting & not accept an offer on the home until that time. If all the plumbing needs repair..those repairs will take awhile. Call and get an estimated date of finished work if they start repairing this home after 341 hearing.

I'm sure obtaining a mortgage is not as easy as it used to be, due to the economy. I can recall when we decided to move closer to Central AR, I called our mortgage co. we've always used & was shocked. I was approved for a $250,000 home without ANY paperwork...no W2's, tax returns, nothing....because of my great credit score. Well we made a contigent offer based on sellin our home & they accepted it. 10 days later, couple receives a full cash price offer. Sorry, we had 72 hrs. to decide to remove the contigency or void the contract. O btw was told we had to close in 15 days. Hehe, both real estate agents didn't think it was possible. Hmmm, we closed in 10 days LOL!

Sooo, back to your 341, if the couple who wants to purchase the home will hold off making an offer until after your 341 & based on home passing inspection. Gee Whilikers, I don't see where there is a problem as you stated you were not making a profit on the home after repairs & closing costs right?

Just my opinion on the situation. If i'm wrong, please feel free to correct me.

Luci

[LSUTiger32]

Selling the house to your brother while you are in bankruptcy will definitely be a HUGE red flag to the trustee.

Any transfer of property to family members in the two years preceding bankruptcy can trigger close examination and the involvement of the us trustee. I had to fill out a form listing any property I transfered to family members in the last two years, including anything I sold to family members. Also, transfers of property is one of the questions that the trustee asks at the 341.

If you do sell the house to your brother, you will have to have a lot of documentation as to the market value of the house, whether your brother paid market value, etc. You can definitely NOT sell the house to your brother at under its appraised value. That will be a HUGE red flag for the trustee. This is what my lawyer told me, when I wanted to sell some video equipment and musical instruments to my brother. She used the house example and said to be safe, we would need to apply the same standards to the studio equipment I was selling my brother. I decided to just sell it on craig's list instead.

I figured selling the property to a family member would be a red flag but my lawyer said that as long as I sell it for at least 2/3rds of its value that I would be fine. It's funny how everything is seeming to turn around now that I filed. I couldn't catch a break on this house for two years and it sells two days after I file. Only me!