How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2884
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
15345323
Type Your Bankruptcy Law Question Here...
Terry L. is online now
A new question is answered every 9 seconds

We have (2) properties. One of the properties is in the foreclosure

This answer was rated:

We have (2) properties. One of the properties is in the foreclosure process. We owe more through a 1st, 2nd mortgage, missed payments and fees than we will be able to pay through a short sale. Will the bank be able to lein or make us sell the property that we can afford? Can the bank go after my pension?

Is bankrupcy and foreclosure the very worst combination? Do they equal 10 years of untouchable credit?

What protection would a Chapter 7 or 13 give us?

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

If you do nothing, and they foreclose, then they could lien or pursue garnishment for any deficiency balance, yes.

Terry L. :

Chapter 13 will help save your home if you wish to pay back the debts.

Terry L. :

If you look to walk away, chapter 7 would be an option.

Terry L. :

Our clients are getting new credit the first month after bankruptcy - credit cards, car notes, and even mortgages within 1-2 years after the case.

Terry L. :

The credit report will show the bankruptcy for 10 years, but you can get credit again right away, just be smart about it and don't get back in over your head.

Terry L. :

Chapter 7 discharges the mortgages, and then the lender will foreclose to transfer title back only.

Terry L. :

Chapter 13 can cure the arrears, by paying them back, along with a portion of any unsecured debts you have, over a 3-5 year repayment plan.

Terry L. :

Talk to a local bankruptcy attorney to see which chapter you qualify for, based on your assets, your state exemptions to protect those assets, and your monthly disposable income

Terry L. :

do you have any questions?

Terry L. :

if you have any more, please let me know. most bankruptcy attorneys offer free consultations, so that should be your next step. Good luck

Customer :

How long does the bankrupcy process take to start? Do I have time to start now?

Terry L. :

the case goes into effect on the date you file.

Terry L. :

It doesn't take too long if you have all of the information needed for your lawyer

Terry L. :

Generally, they need your last 6 months pay advices/income statements, the last 4 years of taxes and your bills.

Customer :

The bank has just informed me that after review over several months, that I am not eligible for any programs. I have 2 remaining options - Short Sale and maybe Deed -in - lieu of forclosure. Do you think that a Short Sale can be done at the same time as Bankruptcy. Will there be any benefit in trying to do so?

Terry L. :

you can always sell the property. If you do it beforehand, the discount offered by the bank is taxable as income to you.

Terry L. :

if you file chapter 7, you can short sell still, since you are the owner until the foreclosure is complete

Customer :

What happens if they lein my property that I can afford to live in? Can they force me to sell that property, even though there is no money in it?

Terry L. :

if you don't file BK, and they do obtain judgment, they will likely put a lien on the home. If there is no equity, they generally will sit back, and wait until the property is sold or refinanced. They could also garnish wages, freeze bank accounts etc. in the meantime to collect on any balance due.

Terry L. :

Any final questions?

Customer :

Thank you!

Terry L. :

Ok great, thanks for your question, good luck to you

Terry L. and other Bankruptcy Law Specialists are ready to help you