2011 chapter 7 not granted,what now?

[denny566]

Since our unsuccessful try at a chapter 7 in 2011 a few creditors have contacted us.
We do not qualify at this time for a 7 and don't want to face losing our rental due to value increase if we do get granted a chapter 7,we need it for income
as we are close to retirement age. One creditor is Northland group representing Universal master card offering a 2800.00 one time payoff from a balance of
$9,400.00 and another letter from Hunt and Henriques representing client PYOD LLC Citibank stating PYOD has engaged Hunt and Henriques to attempt to collect a debt. and stating I have 30 days to dispute.

What should I do?

[bcohen]

Have you been sued? Is there a judgment against you? How old are the alleged debts, and when did you last pay on them?

Depending on the answer to these questions, it may be best to do nothing at all, and ignore the debt collectors and "law firms" which are trying to contact you. If the debts are old enough, and you have not paid anything for a long enough time, the statute of limitations may have expired, or soon will expire. In that case, you want to avoid paying anything or promising to pay anything, as that can reset the SOL and allow the creditor to sue.

Bankruptcy is a tool best used only when a lawsuit is imminent, or someone is trying to seize, levy, or garnish from you.

[AngelinaCat]

What happened that your 2011 filling was not successful?

[despritfreya]

Cat's inquire is on point. Were you denied a discharge in 2011 or was the case simply dismissed because you did not "qualify" for the 7.

If you were denied a discharge the debts owed prior to the filing date of that Chapter 7 will never be subject to discharge in any bk. Your only "defense" will be under state law which is typically a statute of limitations defense.

If the Chapter 7 was dismissed with no bar to filing down the road AND you do not "qualify" for a Chapter 7 you might look at a Chapter 13 (or, if you are over the debt limits, a Chapter 11). Further, you would want to stay away from a Chapter 7 since the rental is most likely not exempt and the Trustee, not only would be entitled to sell it, he/she would be entitled to collect the rents. If you want to keep control of the property you should not file a Chapter 7.

Lastly, since this property is not your homestead, if a creditor gets a judgment and records the abstract of judgment it will become a lien against the rental. You would need to find out how such liens are handled under California law as it relates to the ability to force a sale of the non-exempt property.

If you cannot file bk due to a denial of discharge you might not want to wait until a law suit is filed to settle with the creditors. Remember, once there is a judgment against you, if the creditor records the judgment (and it will), that judgment becomes a lien against the real property. If your intent is to save the rental you need to find out what would happen if you were to allow such a lien. Discuss this with a local attny.

Des.

[denny566]

Our case was "Dismissed" and we were threatened to be sued by the bank we have our checking and savings account and car loan(re-affirmed 2011) with.
The debts are from 2011 which is when we last had any contact with creditors.

[AngelinaCat]

Our case was "Dismissed" and we were threatened to be sued by the bank we have our checking and savings account and car loan(re-affirmed 2011) with.
The debts are from 2011 which is when we last had any contact with creditors.

Okay. Thank you for the information that your case was "Dismissed". Now please explain WHY?

Until we know the answer to that VERY vital question, our membership will not be able to advise further.

BTW your potential new 'Best Friend' is Despritfreya, a practicing BK attorney in Arizona. If you will be forthcoming and truthful in your situation, you will get excellent advice.

[denny566]

The trustee approved our case but some lawyer did not like it so they claimed "Abuse"

[keepsmiling]

Do you have any more info on this to share?
Any idea which lawyer that was or why?
It would be good to know, for your own edification and in order for us to hep you proceed, exactly what happened.
Are you saying that a creditor filed an AP? did you lawyer drop the ball on this or what?

[despritfreya]

Possibilities:

Complete dismissal due to UST filing Motion to Dismiss under 707 - debts will be discharged in subsequent case and can file a 7 only if OP "qualifies". If OP files a 7 and has the ability to pay OP will face another MTD under 707.

OP got a discharge but a creditor filed a 523 complaint and the court found that some particular debt was non-dischargeabale. That debt will never be subject to a discharge in any future bk.

Agreed. . . we need more details - something other than one or two line responses. In addition, a Chapter 7 may just not be in the cards because of that rental property that OP wants to keep.

Des.

[frogger]

The trustee approved our case but some lawyer did not like it so they claimed "Abuse"

You've got to do better than this. BK is not personal, and a lot of people don't like it, however just because someone does not like it does not mean that it's abuse. The trustee has the power, not the lawyers.......

[btbeme]

This sounds like something we can help with if we have all the gritty details...

Standing by...