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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Hi. My apartment is in foreclosure and they plan to auction

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Hi. My apartment is in foreclosure and they plan to auction it off on the 6th of June. I was told I could file for bankruptcy and possibly not lose the apartment. Is this true. if so, can you tell me some possible options?
Any ideas are helpful.
Thank you.

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.

cfortunato :

Filing a Bankruptcy will place a 'stay' on the foreclosure proceedings.

Customer:

For how long? Can I sell it during that time?

Customer:

What if I own it with my husband and we are in a divorce? I live in the apartment.

cfortunato :

The 'stay' lasts for up to 6 months.

cfortunato :

Yes - you can try to sell the apartment while the stay is in effect.

cfortunato :

The fact that you own the apartment with your husband cannot stop the stay from going into effect.

cfortunato :

Even if you are the only one filing a Bankruptcy.

Customer:

This is fantastic news for me. Is there a way I can restructure and possibly keep the apartment in the bankruptcy process.

cfortunato :

1) What is the current market value of the apartment?

cfortunato :

2) What is the balance owed for the mortgage(s) for the apartment?

Customer:

2 million. 1.666 owed

cfortunato :

Is there only one mortgage?

Customer:

I have an offer currently for 1.95 but if it falls through they will auction the apartment and I have no place to go. My husband took my social sec

Customer:

security number and destroyed my credit. It's terrible.

cfortunato :

Are you able to pay the mortgage going forward?

cfortunato :

Filing a re-organization (re-structuring) Bankruptcy would allow you to pay your arrears over a period of up to 5 years. But you would still have to pay the regular mortgage payment each month.

Customer:

yes. I could pay but I cant pay all the arrears at once.

cfortunato :

You would be allowed to pay the arrears over a period of up to 5 years. The mortgage company would be forced to accept this arrangement.

cfortunato :

And perhaps you would be able to sell the apartment in the meantime.

Customer:

You are changing my life! I didn't know what I was going to do.

cfortunato :

Do you have other creditors that you owe a significant amount of money to?

cfortunato :

That could be a problem.

Customer:

Yes I could sell it or rent it out. Would I be allowed to rent it out?

cfortunato :

Yes.

Customer:

Yes. I have others but they are all not mine. They are fraud from my husband. I am finding problems because I am being told that a spouse can sign my name. It's really terrible. Are you saying I wont be able to do the bankruptcy and stay in the apartment if I have that?

cfortunato :

No - you can still file a Bankruptcy, but you would also have to pay what is owed to the credit card companies (also over a period of up to 5 years).

cfortunato :

And which could also be paid out of the proceeds of the apartment sale.

Customer:

I could not pay the credit cards and the apartment.

Customer:

this guy destroyed me financially. He is a thief and he is getting away with it because of a marriage license. it's unbelievable.

cfortunato :

Would you be able to pay what is owed for the credit cards and the mortgage if you were able to pay the amount owed over a period of 5 years?

Customer:

no. So I don't know what to do? Would I still be able to try to keep my apartment?

You would be allowed to pay the credit card balance over a period of 5 years - without accumulating any additional interest.

I think this is what you wanted to know. If not, please let me know.
Thank you.
If you file a Bankruptcy, and if you are not able to pay your mortgage arrears and the credit card bills - over a period of 5 years, in addition to the regular mortgage payment, then you would lose the apartment, since it has more than $150K in equity.
The Bankruptcy trustee would sell the apartment, pay off the mortgage company, give you $150K, and the balance would go to pay the credit cards. You would receive anything left over after paying the mortggage company and the credit cards, anything still owed would be discharged, and your credit can begin to improve within one year after filing.
To me, this sounds better than allowing the mortgage company to sell the apartment at an auction, where it is unlikely they will sell the apartment for enough to give you $150K.
cfortunato and other Bankruptcy Law Specialists are ready to help you

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