I had to consider BK because a divorce court appointed Receiver had contracted a sale of my home at a low ball price and to a 'friend'. The result is that I can't pay off my debt with the net proceeds and I have no other assets.
This sitch has a lot of IFS involved, but I'd like some input as if the IFS were all in place:
1. IF the trustee looks at a contract for sale 'as if' this were a valid price for the property....
2. IF the trustee is only concerned with MY share of the property and MY debts on the property.
3. IF the trustee considers the entire homestead exemption, even tho X will try to claim half.
4. IF the trustee uses the 'net after closing costs' that the Receiver estimates
Under the above circumstances, and just using easy to work with figures,
my share of net after closing costs would be $290k. The homestead exemption would be $90k. The priority liens (prop tax and receiver fees), plus my share of a HELOC and the oldest judgment lien would be $200k. Does that mean that the more recent judgment liens could be avoided?
If yes, then suppose that after they were avoided, the contract for sale fell through. Would they be reinstated? Would I be able to keep the property if I bought out my X's share of the property for an amount based on the original sale contract?
Finally, if after the liens were avoided and the contract fell through, if the Trustee decided that the property was worth more than the original contract,
and there was a better offer, would those avoided liens come back?
I know there is a lot of IFS here, but it just occurred to me that depending on how the trustee determined my share and my share of debt on the property, that certain liens might be avoided and then I might be able to afford to buy out my X's share (not with my money but by family buying out his share)
Yes, I know I need to run this by a BK attorney, but health problems the last week prevented me from even calling any.
This sitch has a lot of IFS involved, but I'd like some input as if the IFS were all in place:
1. IF the trustee looks at a contract for sale 'as if' this were a valid price for the property....
2. IF the trustee is only concerned with MY share of the property and MY debts on the property.
3. IF the trustee considers the entire homestead exemption, even tho X will try to claim half.
4. IF the trustee uses the 'net after closing costs' that the Receiver estimates
Under the above circumstances, and just using easy to work with figures,
my share of net after closing costs would be $290k. The homestead exemption would be $90k. The priority liens (prop tax and receiver fees), plus my share of a HELOC and the oldest judgment lien would be $200k. Does that mean that the more recent judgment liens could be avoided?
If yes, then suppose that after they were avoided, the contract for sale fell through. Would they be reinstated? Would I be able to keep the property if I bought out my X's share of the property for an amount based on the original sale contract?
Finally, if after the liens were avoided and the contract fell through, if the Trustee decided that the property was worth more than the original contract,
and there was a better offer, would those avoided liens come back?
I know there is a lot of IFS here, but it just occurred to me that depending on how the trustee determined my share and my share of debt on the property, that certain liens might be avoided and then I might be able to afford to buy out my X's share (not with my money but by family buying out his share)
Yes, I know I need to run this by a BK attorney, but health problems the last week prevented me from even calling any.