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CML Bankruptcy
CML Bankruptcy, Attorney
Category: Bankruptcy Law
Satisfied Customers: 24
Experience:  Highly experienced in Chapter 7 & 13 bankruptcy.
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Regarding my attorneys effort to reinstate my foreclosed home

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Regarding my attorney's effort to reinstate my foreclosed home after the bank auction. My attorney contends he can petition the courts to reverse the sale. Is this possible?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  dylatess replied 5 years ago.
Over 33 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions. I really doubt it unless the he can show some error in the foreclosure sale process. And for this to occur is very rare.

Because I help people like you here, for a living---this is not a hobby for me---I sincerely XXXXX XXXXX abiding by the honor system with regard to Accepting answers, by Clicking your ACCEPT button now. Otherwise I do not get paid anything at all. BONUS and POSITIVE FEEDBACK are also appreciated An Accept also assures that I can assist you again. I wish you the best in your future.

dylatess, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5145
Experience: 37 plus years of experience specializing in bankruptcy law
dylatess and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.

Is my attorney's failure to file chp 13 ontime considered a form of legal malpractice. THe whole purpose of the filing was to prevent sale. Note, the home was upside down.

Expert:  dylatess replied 5 years ago.
Yes it sure might be. that is if he was retained for that purpose and did not timely file, that couild be sufficient grounds to bring a legal malpractice action. But you will need to consult with a malpractice lawyer who will then seek an opinion from another BK attorney. And quite frankly, this may be your best avenue to receive some type of compensation as trying to reverse a foreclosure sale is an uphill battle.
dylatess, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5145
Experience: 37 plus years of experience specializing in bankruptcy law
dylatess and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Under chp 13 BK, the unsecured limited of ~350K, does the negative value of an investment property count as unsecured. I'm upside down by approximately $60K and this amount may cause me to exceed the chp 13 eligibity requiremnt. Maybe, i can reaffirm the property; hence, reduce my total unsecured debt level.
Customer: replied 5 years ago.
Relist: Other.
timing
Expert:  CML Bankruptcy replied 5 years ago.
Hi there. Let's see if I can be of some assistance. As I understand your current question to be: Can the negative equity of a house be counted toward your total unsecured debt? Is that right?
Customer: replied 5 years ago.
yes
Expert:  CML Bankruptcy replied 5 years ago.

OK, then the simple answer is yes, it does count in the unsecured "pile". However, this is a tricky thing nowadays! Here's why: In a Chapter 13, the creditor will file a claim indicating the collateral (house) is worth what's owed on it, thus making it fully secured (even when you can't sell it for that). In a Chapter 7, in some Districts, the Trustees are taking control of the bank-owned properties to redeem due to underbidding by the banks at the f/c sale. Therefore, you owe it to yourself to contact an attorney licensed in your state to find out for sure what's going on where you live; what the trends are. You may be fine - i.e. not have to list any of it as unsecured! :)

 

I hope this helps and gives you some relief...at least until you can meet with someone in your area. If I can be of further assistance - please let me know.

 

If you have found my answer to be helpful, please click the green "accept" button so I can be paid. Either way - I wish you and your family the best.

 

Thank you!

CML Bankruptcy, Attorney
Category: Bankruptcy Law
Satisfied Customers: 24
Experience: Highly experienced in Chapter 7 & 13 bankruptcy.
CML Bankruptcy and other Bankruptcy Law Specialists are ready to help you

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