Oh oh. Does anyone know what this means?

[Miknan]

Saw on Pacer that on 10-18-11 "Application to Employ" and "Notice Of Appearance" were filed. I'm right at my 60 days and am a no asset case. Originally we were over the means but my wife is very ill and hasn't worked since March so now we are under. Anyone know what this might mean? Thanks.

[despritfreya]

Who filed the Application? Was it on behalf of the Trustee? I assume yes. If so, did you have a business? Are there any preferential payments to creditors? Any transfers within 2 years before filing?

Des.

[AngelinaCatHub]

Sounds like a Trustee is lining up his lawyer for that 700 something exam. The number escapes me (I have a right to forget at my age). It is like a verbal Interrogative, not exactly as formal as a deposition. Taped though and is a fact finding inquiry if some red flag came up. It happened when we were so stupid as to pay our god-daughter money we owed her. It cost us so that she would not be sued for recovery of that amount as we paid the Trustee and became an asset case. Check my sig and you will see a Bk from hell. This is why we are here to stop lawyers incompetence in lack of info. We were sooo ill informed. 'Hub

[Miknan]

I don't have a business. No transfers and no assets. Only thing is our combined income well above means leading up to the bk but we aren't any more. This is just great. I don't know how I'm going to pay the lawyer any more money. I just want this over.

[IamOld]

I don't have a business. No transfers and no assets. Only thing is our combined income well above means leading up to the bk but we aren't any more. This is just great. I don't know how I'm going to pay the lawyer any more money. I just want this over.

So sorry to hear - but indeed WHO filed this? Who is it from?

[tobee43]

i would give you atty a call first thing and find out exactly what it means.

odd if it's only applicable to those with their own business?? it just may be a clerical error??

[ValleYum]

Could it be to employ a Realtor to appraise/list the land he jointly owns with his siblings??

Also - did the UST remove his Presumption of Abuse from you guys after your 341??

[AngelinaCat]

It sounds like the start of a 2004(b) Exam. That's the number 'Hub couldn't remember. We had one because of a preferential insider payment.

[Miknan]

Ok,I called my attorney. I don't think I quite understand all of this and maybe I won't even explain it correctly but here it goes....

My attorney said the trustee says my mortgage is invalid and intends to sell my house (that i included in bk) to pay creditors. He said the bank will "vigorously" fight this and they will all go to court. In the meantime I will stay and live for free. It might be 6 months, a year, or 2 years. He said when/if the trustee sells the house I will have a month to leave.

He also said I will not have a foreclosure on my record. My lawyer thinks this is a good thing for me but it really screws up my plans. My plan was to buy a new house on a land contract after the sheriff's sale.

At least I knew then what time frame I had. I hate this not knowing. Also, if this doesn't count as a foreclosure, what does it count as? I was planning to get another loan 3 years after the sheriff's sale.

The lawyer made it sound like I could get a loan sooner now. I just wanted to be in my new house and start my life over. Seems like this stress is going to go on and on...

[IamOld]

Wow Miknan, that's unreal...how can a mortgage be invalid? Wait...these days don't answer that...but at least you weren't going to keep it right? It's just that now you don't know when you can leave....

BUT it seems your lawyer is pretty sure this will stretch on for a while, meaning you can save $$$...

[LadyInTheRed]

Miknan, if the mortage is invalid, then I would think you have exempt equity in the home. Did your attorney say anything about amending your Schedule C to include a homestead exemption? It seems that if the Trustee wins and sells the house with no mortgage, you could wind up with cash equal to your homestead exemption.

[Miknan]

I have no idea how it can be invalid. One of the banks paid for the house. It got transferred from bank to bank several times so something probably happened there. I still don't see why or how a bank could get totally hosed like this. I was actually going to make a last play to save the house after discharge but knew it unlikely. Now as my lawyer put it, "that option is totally off the table now."

[Miknan]

Oh, Lady in Red, the house is upside down unfortunately.

[justbroke]

I actually like it when Trustees have legitimate issues with the status of the Note and Mortgage (or Deed of Trust). I don't like the aggressive ones that are just poking at the mortgage-backed securities (MBS) type mortgages, hoping to score big. However, if it's a real problem with the Mortgage/Note... I like that type of litigation.

Hopefully we can learn more as this progresses and what the Trustee's strategy is.

[LadyInTheRed]

Oh, Lady in Red, the house is upside down unfortunately.

Not if the mortgage is found to be invalid.