Can I join ya in the 60 day club?!!

[mom2three09]

Had 341 this morning @ 9:30. Dh and I arrived a little early & watched as the 9:00 people were questioned. Looked easy enough. Then it was our turn Trustee asked who wanted to talk first (I said I would) He asked me the same 10 questions he had asked everyone before us (did we read the schedules,sign them,anything changed since filing,etc). Then we touched on our home (that were keeping--doing a ride thru with BofA)... asked how we came up with value (we lowballed the value by about $30K but he didn't question it). Then he said "everything looks to be in place...you're free to go"

Only problem we have is that since we lowballed our homes value our attorney thinks we need to up it to closer to the true value since dh has judgments that automatically attach to our home in our county He said we need to amend our schedules to show equity so that the judgments do not attach to our home (will show we have the allowable/exemption amount of equity for our state). This didn't make a lot of sense to me, but he's the expert so we're trusting he knows what he's doing. In my way of thinking I would believe that the creditor/judgment would have nothing to attach to if there's no equity. Attorney also said that it's better if we show a true value of our homes value in case we ever decide to refinance (which I do not see us doing since we want to sell in 2 yrs but just in case I guess it does make sense to go ahead and change it). So the only thing we need to get to our attorney is the legal description of our home (or copy of the deed) and he will get everything amended. He said he would let the trustee know today to expect the changes on our schedules.

SOOOOO..... I guess we're officially in the 60 day club!!!!!!! (And yes, I feel 100% better now that the 341 is behind us )

[AngelinaCatHub]

Grats on the Club 60.

About the house value. If you are riding through, let them put judgments on the house all they want. They could only collect if you sold the house. However, I thought any judgments in bk7 would be vacated? With equity in the house, wouldn't that be to your worse interest? You could walk away from the house on a ride through if you had to and the judgments would be stuck to the house.

To get a fair market value, compare in Public Records at the tax office what houses around you are being land taxed. Then compare what houses around you have sold for. Probably if you see many with a for sale sign that has weathered away, your house is not worth what it used to be. Again, Grats from 'Hub and Mrs. C.

[aces67]

Congrats! I hope your 60 days fly by!

[RackingJ]

Woohoo! Congrats.

[mom2three09]

Grats on the Club 60.

About the house value. If you are riding through, let them put judgments on the house all they want. They could only collect if you sold the house. However, I thought any judgments in bk7 would be vacated? With equity in the house, wouldn't that be to your worse interest? You could walk away from the house on a ride through if you had to and the judgments would be stuck to the house.

To get a fair market value, compare in Public Records at the tax office what houses around you are being land taxed. Then compare what houses around you have sold for. Probably if you see many with a for sale sign that has weathered away, your house is not worth what it used to be. Again, Grats from 'Hub and Mrs. C.

Thanks 'Hub & Mrs. C


We are doing a ride thru, but keeping our options open since ultimately we would like to sell our home and buy another one as soon as were able to (but will do a ride thru in case anything changes & we choose to just walk away from it). So the judgments would hender that I assume. Although I was under the impression that once you BK them and they are discharged they cannot be collected upon at all. I thought the judgment would still show on the court entry but that it is no longer able to be collected on, so yeah, this does have me very confused Attorney said in our county (Tippecanoe/Indiana) that judgments automatically attach to your property, which I know to be true... but isn't that the reason you list the judgments in your BK?!! So they can no longer be collected on. Hmmmm.....

[music12]

if they filed a judgment lien on the house, or depending on the state the lien could be automatic, then the lien stays in spite of the discharge. liens that are perfected survive bankruptcy, so while they can't collect on the judgment from you, they can get it from the house.

but there are experts here on this, i think justbroke is one... are you listening in?

[2manybills]

First of all, congrats to you!

That's seems so odd though because the debt from the lien is discharged in bankruptcy.

I'm going to check around with some of the attorneys that I know that do BK's here and see what I can come up with.

I'm interested to see what Just Broke has to say.

[NewLifeAhead]

Congratulations on your 341. I hope everything works out for you guys.

[mom2three09]

if they filed a judgment lien on the house, or depending on the state the lien could be automatic, then the lien stays in spite of the discharge. liens that are perfected survive bankruptcy, so while they can't collect on the judgment from you, they can get it from the house.

but there are experts here on this, i think justbroke is one... are you listening in?

I guess in our county (Indiana/Tippecanoe County) the judgment is automatic lien. I know a couple of years ago when we were thinking about selling our home we were told that the $2500 judgment that dh has would have to be paid, so that part makes sense... I guess I'm just really confused as to how the lien can stay once the debt has been discharged in BK. The way I understand it is that once we're able to show equity to cover the lien it will be disolved with the BK. Hence the reason our attorney wants to amend to show the equity that we likely do have. It won't be a problem because we have up to $15K exemption to use on our home.

First of all, congrats to you!

That's seems so odd though because the debt from the lien is discharged in bankruptcy.

I'm going to check around with some of the attorneys that I know that do BK's here and see what I can come up with.

I'm interested to see what Just Broke has to say.

Thank you!!! I hope Just Broke chimes in too

Congratulations on your 341. I hope everything works out for you guys.

Thank you!!!

[music12]

oh! i think i see what your lawyer is doing: he wants to use an exemption to cover the judgment lien. exemptions are all-powerful and supersede liens. then hopefully the atty will file something that officially removes the lien.

i agree the whole lien thing is confusing. but i think the logic behind it is, at least for mortgages/car loans, that the whole point of the lien was that the lender protects himself in case you can't pay, and the protection is getting the house/car back. so if you file bk, i.e. can't pay, the lender gets that protection. this logic, however, does not apply to judgment liens, because the lender did not from the outset seek to protect himself from the debtor's inability to pay by mortgaging the house, and the debtor never agreed to it.

justbroke, where are you??

[music12]

btw, that "easy peasy" in your signature is awfully cute

[RainMoM]

Wow looks like alot of people had there 341 meeting today .. Mine is next week Congrats Mom of 3 on your new lease in life... enjoy

[2manybills]

I have found cases in other States where it states that a "judgment lien" recorded on real property is not discharged in the BK. I'm going to look on Westlaw and see what the BK Code says.

That all seems so odd to me. No sign of justbroke yet?

[SocalBroke]

Congrats! wow, lot of new 60 dayer's

[sl128]

Congratulations....