How long can a lawyer drag-out a bankruptcy hearing?

[mountanddo]

The problem here is that the numbers don't work out. If the OP has 100K in unsecured debt and 200K in equity then even filing for a 7 means there will be 100K left over after paying off all the creditors. The question then becomes how much of that 200K can be exempted under CA law. AFAIK for single people that is 50K.

So the house is worth 380K.
There is $180K balance.
There is 200K in equity.

The OP files a 7.
The court sells the house for 380K.
180K goes to mortgage holder.
100K goes to pay off unsecured creditors.
100K goes to OP.


In other words there is no way to file a 7 and keep the house. The court will sell it.

Wouldn't it be better than if the OP sold the house himself rather than put that in the hands of the court? The court could just take the first offer if say it was 280k and then nothing for the OP. I'd rather be in control of who I sell to and how much I get. Of course, if it doesn't sell no one comes out ahead.

[keepsmiling]

I do believe the OP would have to be paid his exemption first.
But it doesn't look good for keeping the house.

[HHM]

Payment order is
Secured Liens
Exemption
Creditors
Remainder to debtor (if any) and as has been pointed out, the trustee does not need to get top dollar.

We are seeing this more and more lately, asset rich, cash flow poor. Bankruptcy is not a good option for that class of individuals. Bankruptcy is for asset poor, cash flow poor, or asset poor, cash flow rich (standard chapter 13 with DMI), but the asset rich, cash flow poor are in the weakest position relative to creditors with the least options. Bottom line, all you can do is self-liquidate and settle with creditors.

[ttg1]

Bottom line, all you can do is self-liquidate and settle with creditors.

Yes. What I was trying to get at last night is that there is no way to keep the house unless the OP gets a job or some other income stream. Second, it's better to do that sooner rather than later. That big old juicy asset isn't going to go away and the creditors know that. So fighting them in court or missing payments is only going to increase the creditors' share of the pie. There is no way to avoid the damage. The only steps the OP can take are to mitigate it.

I understand the emotional attachment to home and to place but this is a case where the head has to rule the heart. Unless the OP has a realistic chance of a new income stream get out and get out now.

[BrokeIn2011]

Well I have returned back once again. I apologize in taking so long to reply back, but I have been busy looking for work and working odd jobs, and it seems like Sunday is the only day that I can get online and try to work on this mess that I am in.

Thank you Lillymarlen, Mountanddo, ValleYum, and Ttg1. I appreciate you all being so kind to provide me with additional help and advise. Thank you so very, very much.

In regards to my checking and savings account, I only need to use them twice a month. Basically as soon as I put a check in there, the bank always covers it, so I can take it all out again, without them putting hold put on it. Yet if the accounts get levied, then they might put a stop to that. Yet I am not sure how the levy process works . . . I figure once a creditor has a judgment and once he finds any of my accounts, they can take the money out the account once the levy is filed for that one time. Yet I had heard that they can keep coming back to levy the account (anytime they wish), but from my understanding, they have to do a levy each time to take money out and that it is not open-ended, where they immediately get any money that is deposited into the account after the first levy. Can someone please clarify how a levy works?

Mountanddo, the equity was already in the house when I took out a fresh mortgage on it in 2007. The house was fully paid for before my mother passed away and she willed it to my 2 siblings and myself (in 1992), yet of course with the rising value in property all over the nation in the years that came, our value went up like the rest while the R.E. boom was going on. Yet at the time of my other posting, I was using the current value of Zillow has on my house. There is no second mortgage on the house. However since I am essentially unemployed, there is no way I could get a second mortgage or tap into the equity, because it would be too complicated to drag my siblings further into my financial nightmare, since they have their own families and financial responsibilities.

Yet it sounds like even with a Homestead at 50K, if I don’t find a steady and adequate job to do a Chapter 13, yet if I do a Chapter 7 (now, jobless), I am going to lose my home no matter what I do . . . “if” I don’t find a steady and adequate job “if” I file any type of BK.

From the reading I have done thus far, I know that once a creditor or collector gets a judgment against me, they can put a lien on my house (if they want). Since I owe about 100K (in credit card debt) to about 12 different creditors, two of the lawsuits total 17K. What would be some of the repercussions of not filing BK? I can live with liens on my house, as long as the creditors or collectors do not try to force me to sell the house to get their money. Yet I was curious to know, what can I expect by not filing BK?

[HHM]

You can expect exactly what you described, more lawsuits, constant phone calls, judgments, levies on bank accounts, liens on your house and yes, the eventual forced sale of your house.

[BrokeIn2011]

Oops!!! I apologize to both Keepsmiling, and HHM. I did not realized that this subject turned into a second page until now. Thank you both for your contributions, suggestions, and help. I appreciate it greatly.

[BrokeIn2011]

200k in home equity may be an issue...

There are 2 CA exemption sets - Lady In The Red is the guru for this.

OP: Maybe start a fresh thread and put CA Exemptions in title so as to catch her attention??

Thank you once again ValleYum. I took your advice, and just started a new thread (via the link below). Thanks much:-)

http://www.bkforum.com/showthread.php?74219-CA-Exemptions-question.&p=549841#post549841

[lillymarlene]

I don't think having a lien or liens on your house is necessarily a good idea. These loans unfortunately can keep gathering interest until the house is sold. Then also these judgements I've heard, can be expensive to remove later. Maybe think of filing bk as soon as you find work.

You might too, think of taking any little money you have, out of your checking account (use money orders and gift cards to pay bills) if you think your creditors may be able to levy your bank account. I am not sure how a levy works either, but it sounds like once a creditor gets a judgement, they can keep taking funds, out of your account until the judgement is paid in full.

[BrokeIn2011]

Thank you very much, Lillymarlene. I appreciate the additional feedback, support, and the heads-up on the liens:-)

Right now, I am hoping that someone will come along and tell me more about how bank account levies work.

[mountanddo]

I would guess it would depend on how much the levy is and what state you live in. Some states require that they file a levy each time they take money from your account and others don't. Why not just get a jump on it and cancel direct deposit and pay your bills with money orders or gift cards or a walmart pre-paid Visa. I knew a levy might be possible before I filed so the last three checks I cashed at the bank it was drawn on (cost me $7.50) and bought a gift card for the amount of the bills that were due with that paycheck. (cost me $4.95) So it cost me less than $15 dollars for peace of mind. I probably would of looked into cheaper options if I would have to continue doing that but now that my case is filed my attorney said I could start using my bank account again. In MN they can seize your bank account 45 days from the day you receive the summons not the default judgement. So it was just a matter of time. Would hate to see you put a whole check in there only to go to the bank and have them tell you they can't give any of it to you. Is there a reason why you are waiting to act on this and save what little money you do have?

[BrokeIn2011]

Thanks again Mountanddo. I live in California. I do not have any direct deposits. However I do use online bill pay and that really is going to hurt and cost more to buy a money order each time and spend 44 cents each time to pay just one bill:-( Yet I will look into the Walmart pre-paid visa, as that might help.

Yet mainly the reason I am moving slow (not acting upon all of this), is that I am really stressed out big time over my situation, and I am trying to make good rational decisions and trying not to make hasty decisions on very important matters like this.

[mountanddo]

However I do use online bill pay and that really is going to hurt and cost more to buy a money order each time and spend 44 cents each time to pay just one bill:-(

Actually I get my money orders at CUB foods for .79 so you just have to shop around a bit. TCF charges $5.00 even though I have an account.

Understand the moving slow and making good decisions but you might want to move just a bit faster on this one or it could cost more than you bargained for.

[BrokeIn2011]

Thanks again, Mountanddo. I appreciate your additional help:-)