worried about my parents house being forced to sale...
I'm filing a chapter 7 case.
I have:
. $63k in actual, filed federal tax liens against me (from unfiled returns -- now filed, but will take months for the SFRs to update)
. $75k in unsecured debt from 4+ years ago
. $85k in medical bills
. $25k in equity in my parents house, that my name was on (with theirs, I helped them refinance) between 2004 and 2006.
My concern has been...will the trustee try to go after that property. It was not a fraudulent transfer, so I have that going for me, but I still worry about it.
My attorney said that the $63k in tax liens is actually a good thing for my chapter 7 case, because:
1. trustees are paid by how much they recover for the unsecured creditors
2. trustees are usually only motivated by the amount of money they can make (they're usually lawyers, after all, which is funny that my lawyer said this)
3. tax liens are a priority debt, and are paid before any unsecured creditors
4. money paid to tax liens do not pay the trustee anything
Therefor, the trustee seeing that I have much more tax lien debt than potential equity, they will likely just leave it all alone because it won't come close to paying anything towards the unsecured creditors.
I'm not trying to hide anything, I just don't want my parents house lost because I'm filing ch 7.
Does this sound right?
I have:
. $63k in actual, filed federal tax liens against me (from unfiled returns -- now filed, but will take months for the SFRs to update)
. $75k in unsecured debt from 4+ years ago
. $85k in medical bills
. $25k in equity in my parents house, that my name was on (with theirs, I helped them refinance) between 2004 and 2006.
My concern has been...will the trustee try to go after that property. It was not a fraudulent transfer, so I have that going for me, but I still worry about it.
My attorney said that the $63k in tax liens is actually a good thing for my chapter 7 case, because:
1. trustees are paid by how much they recover for the unsecured creditors
2. trustees are usually only motivated by the amount of money they can make (they're usually lawyers, after all, which is funny that my lawyer said this)
3. tax liens are a priority debt, and are paid before any unsecured creditors
4. money paid to tax liens do not pay the trustee anything
Therefor, the trustee seeing that I have much more tax lien debt than potential equity, they will likely just leave it all alone because it won't come close to paying anything towards the unsecured creditors.
I'm not trying to hide anything, I just don't want my parents house lost because I'm filing ch 7.
Does this sound right?
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