how many leins

[bmitchell31]

I have three CC's and two bank notes that I have stopped paying. I can no longer make the payments. I know that I will have judgements against me eventually. My question is: How many leins can one persons property have against it at any one time? The credit cards add up to $15,000 but the bank notes add up to $122,000, does one take proirity over the other or is it first come first served? I am protected by homestead laws in the state of Mississippi, and I will eventually file for Ch 7 next year when I qualify (I make too much money right now).

Thanks

[AngelinaCatHub]

There are no amounts of liens that can be placed upon property. However, in a homestead state, unless you agree on contract, only the mortgage company has a right to lien. I'm not sure of this in your state, but they could not collect in any case unless you attempted to sell the home.

I would attempt to avoid a Judgment at all costs, but in C7 unless the debt has collateral, would probably be discharged. The Judgment could still cause you a lot of grief including a Adversary Procedure during your bk.

Question: If you are making too much money to C7 now, why can't you make some payments and extend the possibility of legal action? Am I missing something here? 'Hub

[bmitchell31]

The two bank notes have collateral (not my home, but realestate) so they would get the collateral, I'm OK with that.

I have been extending this for a year now. I'm finally at the end of my rope, so to speak. I qualify for a CH13, but, that would actually put me in more pain because I would be on a 100% pay back, cant afford that either.

What is Adversary Procedure? I haven't heard this term used.

[justbroke]

What is Adversary Procedure? I haven't heard this term used.

An Adversary Proceeding (AP), or complaint, is basically a miniature lawsuit within the Bankruptcy process. Don't let the word "miniature" fool you. It's a full blown legal proceeding! It's called miniature because it's contained within the Bankruptcy. You can call witnesses, issue subpoenas, and even demand a jury. It's usually used between the debtor and creditors, either of which can be the Plaintiff. The U.S Trustee can also bring forth an AP, or have one brought against them.

You really don't want to be involved in one. The reason is that they can get expensive, because they are in fact full blown legal proceedings.

There are basically two ways things get done in Bankruptcy Court... okay, three. First is the uncontested matter, which are things which are normal and flow without any objection or opposition.

Then there are contested matters. Contested matters are usually simple motions that don't require a full trial. They are handled through hearings (both evidentiary and non-evidentiary) and it's basically a "bench" trial where the Judge makes the final ruling. These are usually quick and are done within a hearing or two.

Then there are the complaints. These are called Adversary Proceedings. As stated, they are full blown legal proceedings with all the trimmings! You can spend a lot of time and money on these, and most people try to avoid them, if possible. Just ask CatHub about it.

[bmitchell31]

Not to drag this out,but,I thought a CH7 wipes out the debts. Also if I'm protected by homestead and have no other assets what else can they do? I'm bankrupt!

I'm not trying to sound rash, but at the point of bankruptcy, what recourse do they have?

Thanks for your advise.

[AngelinaCatHub]

Not to drag this out,but,I thought a CH7 wipes out the debts. Also if I'm protected by homestead and have no other assets what else can they do? I'm bankrupt!

I'm not trying to sound rash, but at the point of bankruptcy, what recourse do they have?

Thanks for your advise.

Well 'mitch', I'm still a bit confused. You make too much money for a C7, you state a C13 will make a 100% payback, yet you have no money? I'm simple minded. Make this easy for me.

Yes you will lose the land associated with the bank notes, and the land will be sold far below it's value and you will owe the deficiency. That could then turn into a Judgment that will attack future income and property. A C7 is the best out if you can get one with your amount of wages. (still not understanding all this).

Have you spoken to a bk lawyer or two? Are you just speculating at this time? It would behoove you to see a lawyer if you have not yet done so. 'Hub

[bmitchell31]

Trust me, I'm complicated.

yes I spoke to one lawyer, have an appointment in two weeks with another.
lawyer said pay what bills I can, let bank foreclose.

I can't file for 7 because I make above the median income for my state, this does not mean I have any extra money. If I did I sure would not be here.

This has been an accumulation over several years, and time nor space on this forum could allow me to give you all the details, sorry.

Thanks again for the comments.

[justbroke]

I can't file for 7 because I make above the median income for my state, this does not mean I have any extra money. If I did I sure would not be here.

Being above median income has nothing to do with being able to file a Chapter 7. If a lawyer told you that... move on.

(Congress, as part of the BAPCPA amendments to the Bankruptcy Code in 2005, changed the Bankruptcy Code such that qualifying for a Chapter 7 is based on a Means Test. There is no bright line "income" test for being qualified to receive a discharge in a Chapter 7. Otherwise, anyone under the median, wouldn't even need to fill out Schedule J. )

[StartingOver08]

I filed a successful Ch 7 and was waaaayyy above median income.
(So have many others here on this forum.)

However, I was negative disposable monthly income. That is what counts in your filing. If the attorney you met with only looked at your income and not the whole picture - find an attorney that will. Look up the posts by Liz in CA - she had to interview something like 6 attorney's to find one that would file her as a Ch 7 because she too is over median, but has negative disposable income. Have you done the means test yourself and figured out your schedules I and J?