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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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This question is for bancruptcy atterneies. There is a high

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This question is for bancruptcy atterneies. There is a high amount defult judgment debt with fraud charge. Is it possible to discharge it through Bancruptcy?
Submitted: 10 months ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 10 months ago.

cfortunato :

 


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

cfortunato :

Debts based on fraud are one of the 19 types of debt that cannot be discharged in a Bankruptcy.

cfortunato :

Bankruptcy Stat. 523(a)(3).

cfortunato :

The relevant Bankruptcy Code section is 523(a)(2)(A) (not 523(a)(3)).

cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience: Bankruptcy professor.
cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 10 months ago.

I heard that If I try to include the debt(default judgment with fraud charge) the creditor will most likely open a adversary hearing. Would it be hard to prove that it wasn't a fraud through adversary hearing?

Expert:  cfortunato replied 10 months ago.

A Bankruptcy court will not determine whether a judgment that states it is based on fraud is actually based on fraud. A Bankruptcy court would only determine the debt is non-chargeable because it is based on fraud.

The charge of fraud would have to be removed by the court that issued the judgment.

cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience: Bankruptcy professor.
cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 10 months ago.

How much equity is needed for a bankruptcy judge to decide if my primary home should be sold or not? How do judges estimate our home value? Do they use the site like Zillow.com or?

Expert:  cfortunato replied 10 months ago.

The answer depends on a number of factors:
1) Have you lived in California continuously for at least 2 years? If not, where have you lived for the past 2 1/2 years?
2) Are you married or single?
3) How old are you and your spouse (if married)?
4) Are you or your spouse (if married) disabled?
5) What is your gross annual income and, if married, what is your spouse's annual gross income?

Customer: replied 10 months ago.

How do I find good bancruptcy atterney in Los Angeles area? I'm having hard time finding a good banckruptcy atterney

Customer: replied 10 months ago.

 


How do I find good bancruptcy atterney in Los Angeles area? I'm having hard time finding a good banckruptcy atterney

Expert:  cfortunato replied 10 months ago.
You should call the California Bar Association to ask for a recommendation. The number is 415-538-2000.
Customer: replied 10 months ago.

sorry I missed your quetsion. here are my answer:

The answer depends on a number of factors:
1) Have you lived in California continuously for at least 2 years? If not, where have you lived for the past 2 1/2 years? yes
2) Are you married or single? married
3) How old are you and your spouse (if married)? 34
4) Are you or your spouse (if married) disabled?no
5) What is your gross annual income and, if married, what is your spouse's annual gross income? 19,000from me and none from my wife



Expert:  cfortunato replied 10 months ago.
Based on the information you provided, you and your spouse are each allowed $75,000 worth of equity in your home = $150,000 total equity.
To determine a home's current market value, most Bankruptcy trustees look at comps and also at Zillow.com (or similar website). Rarely, a trustee will pay for a professional appraisal.
Customer: replied 10 months ago.

If there is high equity on my home, can lien judgment creditor make decision to sell my home in banckruptcy? Or only the mortgage holder can make that decision? Also even if there is high equity, if I have good mortgage payment history, will they still want to foreclose the home?

Expert:  cfortunato replied 10 months ago.
If you file a Bankruptcy, it will be up to the Bankruptcy trustee to decide whether or not your home will be sold - it will not be up to any of your creditors.
If your home has more than $150,000 equity, (plus approximately 5% of the sales price - cost to sell), you can expect that the trustee will sell your home. If this happens, the first lienholder (if the first lien is based on a mortgage) will be paid first, and you will receive the $150,000 homestead exemption amount, and the balance (after subtracting 5% of the sales price) will go to your unsecured creditors - including the second lienholder - who will not receive any priority because that debt is non-dischargeable. The second lienholder will be paid in proportion to the total amount of unsecured debt you have when you file a Bankruptcy.
Since the balance owed to the second lienholder cannot be discharged in a Bankruptcy, that amount (that is still owed) will still be owed after the Bankruptcy process is completed.
If you sell the house yourself, instead of filing a Bankruptcy, you may be able to pay the judgment in full. The $150,000 homestead exemption applies whether or not you file a Bankruptcy.
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience: Bankruptcy professor.
cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 10 months ago.

Who is the bankruptcy trustee?


 


Also lets say there is mortgage loan balance 1.1mill and the judgment lien amount 300,000. if the appraiser value of my home is 1.4mill, will my home get sold through chapter 7 BK?

Expert:  cfortunato replied 10 months ago.

Every Bankruptcy case has a trustee assigned to it. The trustee handles the Bankruptcy case.
If your home can be sold for $1.4 mill, and the mortgage balance is $1.1 mill, you can expect the house will be sold if you file a Bankruptcy. This is in spite of the fact that there is a second lien on the property, as the trustee can arrange to have the second lien removed so that the house can be sold.

Customer: replied 10 months ago.


Home value is 1.4mill but the mortgage balance 1.1mill + lien judgment debt 300,000=1.4mill. this means there is no equity to sell the home through BK no? this is what local BK attorney told me and wanted to make sure if this is true.


 

Expert:  cfortunato replied 10 months ago.
The Bankruptcy trustee will able to remove the judgment lien.
Once the judgment lien is removed, the house will have sufficient equity to sell it.
The equity will be $1.4 mill minus $1.1 mill for the mortgage minus $150K for the homestead exemption = $150K equity.
Customer: replied 10 months ago.

If I was able to discharge the judgment lien debt throught chapter 7, will I be able to remove the line from my home or are they seperate matter?

Expert:  cfortunato replied 10 months ago.
If you can have the judgment discharged in a Bankruptcy, you can also arrange to have the judgment lien removed.
But that would have the same affect as the trustee having the lien removed - the result will be more equity for your creditors when your home is sold.
In other words, the result will be the same whether you have the lien removed or whether the trustee has the lien removed.
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience: Bankruptcy professor.
cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 10 months ago.

You said earlier that if there is a equtiy, trustee can remove the lien and sell my home. But is it common for trustee to remove the lien to sell it? Wouldn't the lien holder feel unfair to get it removed? I thoght the lien holder has priority to collect debt before other creditors.

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