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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12930
Experience:  B.A.; M.B.A.; J.D.
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I have unsecured debt.

Customer Question

I have unsecured debt. I plan to use go bankrupt as with the sudden and unexpected death of my husband at only 57, I have no other choice. I am still trying to save my house as it is family land, it has been a long drawn out process. My question is what can the debt collectors do now, what can they do after I go bankrupt? Is there a reason I should not go bankrupt when I am in process with the bank to save my house.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 1 year ago.

cfortunato :

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

cfortunato :

I am sorry to hear about your losses, and know this must be a very difficult time for you.

cfortunato :

Concerning the property you own -

cfortunato :

1) Are the house and the ADU on the same deed?

cfortunato :

2) What is the current market value of the house and the ADU?

cfortunato :

3) What is the balance owed for the house and the ADU?

JACUSTOMER-is8xk56s- :

The house and ADU are on the same deed. Market value is around $450,000. The original loan was for $535,000.

JACUSTOMER-is8xk56s- :

My question is about going bankrupt to get rid of unsecured debt. I can not see a way to pay it off, or even payments at 64. There will be no equity in my property if I win the lawsuit with the bank, and they set me up for a payment.

JACUSTOMER-is8xk56s- :

My lawyer told me I have a good chance of saving the property if we go to a lawsuit. The bank did not mitigate in good faith as they sent letters telling me and the lawyers that I had until 4/30 to get the information in. The bank then denied me on 4/24. They had me resubmit the information...and I do have the income to make the payment...as they always ask for 3x the payment. I have that. Yet they just did not respond. So I am in a lawsuit.

JACUSTOMER-is8xk56s- :

My question is only about getting rid of the unsecured debt. I imagine it is important to know if there is equity in the property? There is none. What can debt collectors do except call me? I borrowed with the idea of selling the house after the death of my husband. Nothing was selling, and my property was valued at $825,000. I tried to sell it for just enough to pay off what I owed....$675,000.

JACUSTOMER-is8xk56s- :

I am confused???

JACUSTOMER-is8xk56s- :

I have not received any information and I have been here for over a half an hour. All my information is in and I answered his questions. I have not been given any answers to my question.

JACUSTOMER-is8xk56s- :

I used your service a while ago....and was very happy with it. This has not been helpful at all and I started with your system over an hour ago. It kept telling me that my email was in your system. I could not remember the password XXXXX you gave me one...then I had the same problem and your new password XXXXX me would not work : ( Now you tell me at the top to review my expert's post and reply to my expert...but you say the expert is off line again. I tried to rate and finish....then it tells me the expert is not finished.

JACUSTOMER-is8xk56s- :

I looked on the left....and it tells me that you are awaiting customer action! I am here and the expert is not. It won't let me finish...

JACUSTOMER-is8xk56s- :

I need to finish up with this. I do not know what to do and hope I will be given NO charge as all I have is no answers and a huge waste of time.

cfortunato :

I will opt out of this question, as I am having internet trouble, so that someone else can help you further.

Expert:  Phillips Esq. replied 1 year ago.
Thank you for giving me the opportunity to assist you. Kindly use CONTINUE or REPLY button to ask for clarification or follow-up questions.



A different Professional here:


You can file for bankruptcy protection to wipe out the unsecured debts if you are eligible. However, if you are behind on the payment of your mortgage, you must file Chapter 13 if you want to save your home. Otherwise, you can file Chapter7.

You would be eligible to file for Chapter 7 bankruptcy protection, if you meet the Means test—the income test. If your income is equal to or less than the current income guidelines for your family size in your state, you would be eligible to file for a Chapter 7 bankruptcy all things being equal. The income used in calculating the Means test is the income for the 6 months before the filing of the bankruptcy petition. This means that if you are filing for bankruptcy protection this month, August 2013, the income that would be used is your income from February 2013 to July 2013. If you are filing next month, September 2013, the income that would be used in the Means Test calculation would be the income from March 2013 to August 2013, etc. In Chapter 7, if the Court grants you a Discharge your debts will be wiped out with some exceptions such as some taxes, child support, alimony, which are not dischargeable. You would get a clean state, a fresh start.

These are current income guidelines for the State of Washington:

Family size of one person $52,724.00
Family size of two persons $
65,123.00
Family size of three persons $
71,289.00
Family size of four persons $
83,270.00
Add $8,100.00 for additional individual


The filling fee for Chapter 7 is $306.00.


An individual (“consumer debtor” or “debtor”) would be able to file a Chapter 13 if the debtor has disposable income—extra income after necessary expenses every month to fund a Chapter 13 plan and the debtor must also meet the debt limit requirement. In order to file for Chapter 13, a debtor's unsecured debts must be less than $383,175.00 and secured debts must be less than $1,149,525.00. In Chapter 13, the debtor prepares a payment plan and makes payments to his/her creditors on a 3 or 5-year plan. If the debtor's income is equal to or less than the current income guidelines for his/her family size in his state, the debtor would do a 3-year plan. However, if the debtor's income is more than the current income guidelines for his/her family size in his state, he would do a 5-year plan. His mortgage arrears and unsecured debts would be paid through the Chapter 13 plan.

The filing fee for Chapter 13 is $281.00

Customer: replied 1 year ago.


A major part of my initial question is.... what actions can debt collectors do with unsecured debt?

Customer: replied 1 year ago.


I may be repeating myself, but thought I would try again. I appreciate your information so far. A major part though is...what actions can debt collectors do? What should I say to debt collectors if I plan to use chapter 7 when my property issue is resolved with the bank?

Expert:  Phillips Esq. replied 1 year ago.

A major part of my initial question is.... what actions can debt collectors do with unsecured debt?

Response
: After unsuccessfully trying to collect debts, debt collectors would file lawsuits to attempt to collect the debts. If a debtor does not respond to the lawsuit, the debt collectors would obtain Default Judgment and then try to enforce the Judgment through attachment of the debtor's assets including wage garnishments, levies on bank accounts, liens on real estate, etc. If the debtor files for bankruptcy protection after the Default Judgment, the debt collection actions would be immediately suspended pending the outcome of the bankruptcy case. If the bankruptcy case is successful—if the debtor obtains a Discharge Order from the bankruptcy Court, the Judgment is worthless, the debts would become uncollectable. If the bankruptcy is not successful—if the bankruptcy case is dismissed or if the debtor is denied a Discharge the debt collectors would resume their enforcement actions—their collection efforts.

Hello, I am not a typist. You need to give me a chance to prepare my response to you. Also, I have other customers here that I am helping. You need to be more patient. I responded to your post after another Expert opted out. You responded more than 8 hours later, you need give me a chance to respond.

Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12930
Experience: B.A.; M.B.A.; J.D.
Phillips Esq. and other Bankruptcy Law Specialists are ready to help you
Expert:  Phillips Esq. replied 1 year ago.

What should I say to debt collectors if I plan to use chapter 7 when my property issue is resolved with the bank?


Response:
Tell the collectors that you are getting ready to file for bankruptcy protection. The collectors would ask you when. You should say that you do not know yet because you are still getting your documents ready. Then they would tell you that they would call again in “so so and so” weeks to get the docket number for your case. If they call again and you still have not filed, just tell them that you have not filed yet.. Most collectors would hesitate filing a lawsuit after hearing that you are about to file for bankruptcy protection.


Let me know if you have additional question.



Thank you very much for the positive rating and the bonus.


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