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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My ex-business partner and I purchased two Assisted Living

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My ex-business partner and I purchased two Assisted Living Facilities in 2006 from an unscrupulous doctor. The business failed in May 30, 2009, forcing me to close the doors of both facilities. The doctor, who sold us both facilities, filed a judgment against us for Three Hundred Fifty Thousand Dollars – which forced the both of us to file a Chapter 7 Bankruptcy. My bankruptcy was discharged on November 17, 2009. I was instructed by my bankruptcy attorney to put my home (primary residence) into the bankruptcy because he said a judgment supersedes a bankruptcy. My lawyer told me that if I kept my home and sold it 10 years from now, I would first have to repay the bank, and then I would have to repay the doctor. He told me to give up my home and just walk away and get a fresh start.

My attorney told me to stay in my home until the lenders issued me a Notice of Intent. He also described a program called “Cash for Keys” that the lenders have in place, which will give you money to transition to another location.

I have been in my home for approximately 20 months and have not yet received a Notice of Intent. I would like to know if the information my attorney provided to me is accurate.

When my ex-business partner filed for bankruptcy in November of 2008, she reaffirmed her home. Is it too late for me to try to keep my house, and is the information that was given to me by the bankruptcy attorney accurate? Can someone please clarify this for me?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

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.

Can you tell me whether you have been making payments on your mortgage? Was the judgment a lien against your property?
Customer: replied 6 years ago.
No I have not made a payment in (20) months. The judgment was against the business properties.
Expert:  Ellen replied 6 years ago.
It is not too late for you to try to keep your house.

Your personal liability on your mortgage appears to have been discharged by your bankruptcy. Since the judgment was not attached your house, only the lien of the mortgage remains.

You can consider contacting your lender to arrange for a modification to the original terms of the mortgage. Since they have not initiated foreclosure after 20 months, they do not appear anxious to foreclose on this property and therefore you appear to have a good amount of bargaining power to negotiate the modification.
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