Foreclosure Happened 2 Years Ago - Means Test Question....???

[gman]

I just had a lawyer tell me that this strategy would work - but it sounds fishy to me...

I AM CONTACTING OTHER LAWYERS ON THIS - BUT AM INTERESTED IN THE VOICES HERE AS WELL.

Scenario:

* I currently rent

* Had a home where I stopped making payments in 2008 go into foreclosure in 2009.

* First mortgage = about $151,000 - payment was about $1,382/mo when payments were being made

* First mortgage creditor wrote off the debt when the property foreclosed and is no longer trying to collect

* HELOC = 48,000 balance - payment was about $190 / month when payments were being made

* HELOC debt is still being sought by a collection agency - even though the foreclosure is done.

* HELOC debt was incurred AFTER the home was purchased (not during the purchase itself.)

* Property taken back by bank - and sold to someone else in 2009.

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MY QUESTIONS ONLY HAVE TO DO WITH THE MEANS TEST (FORM B22A) - PLEASE DO NOT WORRY ABOUT SCHEDULE J - THANKS!!!!

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QUESTION: Can the HELOC payment be listed as a secured creditor payment on the MEANS TEST? If so, would the amount be $190 - or would it be 48,000/60 months = $800. Any reasons for your logic are greatly appreciated!

QUESTION: Can the first mortgage payment be listed as a secured creditor payment on the MEANS TEST? If so, would the amount be $1,382 - or would it be $151,000 / 60 months = $2,517?

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This lawyer seems to think that these payments can be included in the Means Test due to this case in my state of Georgia:

http://www.ganb.uscourts.gov/judges/opn/opn_view.php?Id=387

[sunshinepa]

OK...........I don't get how your lawyer would even suggest that a home that was foreclosed and resold could be included as a secured debt on your means test? Referring to 1st mortgage? If this is right, can somebody explain that to me......cuz I fail to understand how a property that was foreclosed on, sold can now be your secured debt?

Are you talking about a balance you might owe??

[tcreegan]

Hi gman, if your name is off the deed, neither are secured anymore. Even if Georgia has some weird state law, think of how a trustee is going to see it in light of federal BK code....

Tom in Colo

[newbie2]

That's the oddest thing I've ever read about for a lawyer to suggest. If I were you I would get a 2nd opinion. I would think any Trustee would have a field day with this one, especially considering the house was sold and is no longer in your name.

BTW, when the trustee files an objection will your attorney tackle the extra work load trying to argue about this without charging you???

[Freddy03]

How can you claim something that's not your's anymore? IMO I think you should probably consult with a new attorney.

[justfiveofus]

Well it's not secured because it *was* secured by the house and the HELOC will go away in the BK. Unless you're paying it when you file then you shouldn't list it.

[gman]

I think this lawyer was shooting from the hip - or worse - was interested in getting me into a 7 and then have me forced into a 13 - to make him more money.

The other lawyers I have spoken with shot down his idea.