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Ellen
Ellen, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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Even though I am a neurologist and on this site as a expert,

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Even though I am a neurologist and on this site as a expert, I am still confused about my own legal situation. I am default on a corporate loan for my practice. With fees etc the amount I am being suited for is 850,000. It will be heard Monday in general sessions court for a motion for summary judgement. The bank has refused to negociate. Last week i was diagnosed with early prostate cancer and will need surgery next week.. My bankruptcy attorney is on vacation and said he cannot continue the case now. I need a 30-90 day extension to deal with my medical issues and pending partial or total disability. Should I have my personal lawyer continue it and find a new bankruptcy attorney? Can I provide medical documentation to the court, or even go myself to plead for a continuance.. Can the motion for summary judgement be contested or continued within the 30 day period befor it is finalized?
Hello,

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

Have you already filed bankruptcy? If so, what chapter bankruptcy?
Customer: replied 6 years ago.

No. but i am told by my attorney that I do not qualify becaus of debtt amount and income. However, another attorney on this site said that if I have no equity in my house and no Non ira assets, I could still apply for Chapter 7. Is that true? My local bankruptcy attorney knows nothing about this.

 

After much pressure, I was able to postpone the hearing for summary judgement monday. With cancer surgery tuesday, that is a load of my mind.

 

If I eventually foreclose on my current house and I put the new house in my adult son's name and my wife, would that give me some protection from the bank coming after me for other judgements or for the foreclosure residual? My wife and I are currently on the present mortgage and it is current. W ould paying the first and not the second delay backruptcy proceedings i?Same bank?

 

 

Hello,

I looked back and read your prior threads. I agree that you should consider a Chapter 7 bankruptcy. A Chapter 13 has asset/debts limitations but a Chapter 7 does not.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

Here are the exemptions for Tennessee:
http://www.bankruptcyinformation.com/TN_exemp.htm

Disability benefits are exempt. Consider finding a more experienced bankruptcy attorney.





Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.

So if my liabilities are greater than my assets(they are by1 mill). I can still claim 7?. Could I exempt some items such as car, etc if I was current on them.

 

Could I let them foreclose or short sale my current house 800,000 upside down if I included it in the backruptcy. Could I lease purchase another house before filing 7 with money from a relative for payments and r down payments. for a lease purchase if it was done before chapter seven? How about chapter 11 since I am told no way do i qualify for 13. My total charge off in seven would be 2.1 mill.

 

Will pay you by tip. thanks to FLanNYC lawyer I may have

some more questions. I will get back to you at about 5:30 edt after this answer.

Jack

So if my liabilities are greater than my assets(they are by1 mill). I can still claim 7?.
Yes

Could I exempt some items such as car, etc if I was current on them.

Yes

Could I let them foreclose or short sale my current house 800,000 upside down if I included it in the backruptcy.
You could let them foreclose. There would be no incentive for you to short sell


Could I lease purchase another house before filing 7 with money from a relative for payments and r down payments. for a lease purchase if it was done before chapter seven?
Yes but it would not be advisable as the house would then be part of your bankruptcy estate. Better to receive the money from the relative and buy the house after the 7 is complete.

How about chapter 11 since I am told no way do i qualify for 13. My total charge off in seven would be 2.1 mill.

A Chapter 11 is reorganization. Your post does not indicate that you need to reorganize your debt. It is also very costly (15k and up)
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.

Is there anyway I can lease the house I want untill after the case settles(how long doesthat take ) and get the the gift to pay to the owner. I would still need a 25K gift for security deposit but I could make the monthly payments.

 

Could I have the gift( 175k) given to my 18 yearold son. He would use as down payment. I would lease the house from him for the amount of the note. I could cosign. I could purchase the house from him afer the chapter 7 settles for say 5000 k and take over note that I have cosigned for.?

 

Because of the debt amount 1.2 corporate and 1.6 ( current house personal )all local attorneys say chapter 11. you can keep you your cars ( financed and keep the new house, 20% equity and reorganize the for payment of the rest. I am 61, other than to purchase house, i need no other loans.

 

My wife does not want to file bankruptcy untill she is in another house. does not want to rent or move again. It is her 75 K.

Is there anyway I can lease the house I want untill after the case settlesYes(how long doesthat take 90-120 days)

and get the the gift to pay to the owner. I would still need a 25K gift for security deposit but I could make the monthly payments.

the 25k security would be lost in the bankruptcy

 

Could I have the gift( 175k) given to my 18 yearold son. He would use as down payment. I would lease the house from him for the amount of the note. I could cosign. I could purchase the house from him afer the chapter 7 settles for say 5000 k and take over note that I have cosigned for.?

yes

 

Because of the debt amount 1.2 corporate and 1.6 ( current house personal )all local attorneys say chapter 11. you can keep you your cars ( financed and keep the new house, 20% equity and reorganize the for payment of the rest. I am 61, other than to purchase house, i need no other loans.

I disagree with the 11. It does allow you to reorganize but in your current situation it does not appear that you would lose any substantial assets in a 7

 

My wife does not want to file bankruptcy untill she is in another house. does not want to rent or move again. It is her 75 K.

You can stay in your current house during the 7

Ellen and other Bankruptcy Law Specialists are ready to help you
Thanks for the bonus - I appreciate it!
Customer: replied 6 years ago.

I need to get out of the current house now. It is one of the main reasons i am in BR.

12K/month note 4-5 k month taxes utilities. Like everything in medicine, payments have gone down. These payment and the corp debt is killing me.

 

The house that I would like to move to is much smaller, in a great location, 5 years old like new . all brick, pool .25 acre lot. 6200 sq ft Good inspection. Because real estate is so low now, owner wants to move up to lakefront house. 2 million lakefront house he is getting for 1.2. He cannot get mortgage untill be gets out of present house . He is asking 525K will take 175 down and finance the rest a 6 % for 5 years. Great deal. I would not want to lose if at all possible. It will not last on market 120 days.

 

payment with utlities takes 30% of my previous home and this one newer.

Would 11 bet me get into this house now and out of the old as a form of reorganization?

 

I also have a 16 year son at home., would this help with the BR exemptions.

 

What is your best idea of how I can get into this new house aug 1, stop paying on the old house. Keep my financed cars and my house contents(nothing really valuable)

and still be within the chapter 7 rules.

 

My medical corporation sub s)would also be part of the BR because I am the sole owner and I signed the equipment and buildout note personelly. I was unable to buy the building after buildout. The building and the buildout is owned by someone else who also paid for part the buildout with his own money. he is not signer on the corp note.

 

Most machine have died. one or still good. I have been told to transfr to unnamed new corportaion befor BR. How is this done.. REF?

I need to get out of the current house now. It is one of the main reasons i am in BR.

12K/month note 4-5 k month taxes utilities. Like everything in medicine, payments have gone down. These payment and the corp debt is killing me.

You can stop paying the mortgage and stay in the house during the bankruptcy as the bankruptcy would stay the foreclosure during the pendency of the bankruptcy - an extra 90-120 days

The house that I would like to move to is much smaller, in a great location, 5 years old like new . all brick, pool .25 acre lot. 6200 sq ft Good inspection. Because real estate is so low now, owner wants to move up to lakefront house. 2 million lakefront house he is getting for 1.2. He cannot get mortgage untill be gets out of present house . He is asking 525K will take 175 down and finance the rest a 6 % for 5 years. Great deal. I would not want to lose if at all possible. It will not last on market 120 days.

Great deal if your son buys it

payment with utlities takes 30% of my previous home and this one newer.

Would 11 bet me get into this house now and out of the old as a form of reorganization?

Remember in an 11 you would be paying a portion of your unsecured debt and would require court approval to obtain an extension of credit

I also have a 16 year son at home., would this help with the BR exemptions.

No effect

What is your best idea of how I can get into this new house aug 1, stop paying on the old house. Keep my financed cars and my house contents(nothing really valuable)

and still be within the chapter 7 rules.

The house appears to be your only difficulty. Possibly if your son buys the house and he makes the mortgage payments until after the 7

My medical corporation sub s)would also be part of the BR because I am the sole owner and I signed the equipment and buildout note personelly. I was unable to buy the building after buildout. The building and the buildout is owned by someone else who also paid for part the buildout with his own money. he is not signer on the corp note.

'All liability could be discharged in the 7

Most machine have died. one or still good. I have been told to transfr to unnamed new corportaion befor BR. How is this done.. REF?

That could be considered a fraudulent transfer

Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.

Does the sub S have its own set of exemptions from chapter 7 , or would it be part of my general chapter 7 personel exemptions since it is a pass through to me or would there be there be a separate chapter 7 filing and set of exepmtions for the S corp.

 

How does chapter 7 handle clothes value, furniture? How do they estimate tthe value. We have nothing really valuable.

 

I we have a loan on anything, personal and corp, understand we can keep the item if we exclute it and pay the payment as long as it does not have a lot of equity. Is this true. Ie cars.

 

Is it ok to cosign for my son in the mortgage etc without violating any rules?

 

Thanks,

 

Probably more questions next week. You are helping a lot. Dr S

Does the sub S have its own set of exemptions from chapter 7 , or would it be part of my general chapter 7 personel exemptions since it is a pass through to me or would there be there be a separate chapter 7 filing and set of exepmtions for the S corp.

There are no exemptions for a corporation that file bankruptcy. Your stock ownership in the s corp would be part of your general personal exemptions if you chose to retain the corp.If you did not chose to retain the corp, you would surrender your shares in the personal 7.

How does chapter 7 handle clothes value, furniture? How do they estimate tthe value. We have nothing really valuable.

They are valued at fair market value - think garage sale value.

I we have a loan on anything, personal and corp, understand we can keep the item if we exclute it and pay the payment as long as it does not have a lot of equity. Is this true. Ie cars.

The equity of the item could be claimed as part of your personal property exemption. However you would still list the debt even though you continue to make the payments. By listing the debt you discharge your personal liability leaving the debt collateralized by the asset only.

Is it ok to cosign for my son in the mortgage etc without violating any rules?

Yes. It is critical that there be no comingling of your assets with those of your son.

Thanks,

Probably more questions next week. You are helping a lot. Dr S

I will look forward to your questions. I am happy to help and wish you the best.


Ellen and other Bankruptcy Law Specialists are ready to help you