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 Elizabeth Prentice Your Own Question

Elizabeth Prentice
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 170
Experience:  Managing Attorney for one of the largest consumer bankruptcy firms in America.
70685486
Type Your Bankruptcy Law Question Here...
Elizabeth Prentice is online now
A new question is answered every 9 seconds

A friend of mines home is overdue on property tax $20K and

Resolved Question:

A friend of mine's home is overdue on property tax $20K and CA.EDD wants $18K from him.He is unemployed. No cash. living with relatives.
He owns his home outright and it's worth $100K but scheduled to sell next month at auction for the property taxes. Starting bid is $20K, so it may sell anywhere between 20K to say $50K. If he surrenders his home on the debtors intention form Chapter 7 BK, will all debts be completely gone after his BK either way, or can he be responsible to CA. EDD if the sale of his home comes up shy of EDD's debt? Will he get any money if his home sells for more than his combined debts? What would you do if you were him? Thank you.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Elizabeth Prentice replied 1 year ago.
I am a bankruptcy attorney and I would be happy to assist you. Use of this service does not create any attorney client relationship. Information provided is not the practice of law but intended merely with information and to direct you in finding an attorney in your locale.

Your friend should consult with a bankruptcy attorney in his area, regarding the filing of a Chapter 7 bankruptcy. Consultations for bankruptcy are typically free.

With regards XXXXX XXXXX stated debts in bankruptcy, CA EDD is non-dischargeable in bankruptcy. Taxes due for property are also non-dischargeable; however, if the home is sold or foreclosed upon, it is possible that the lender may pay the property taxes in order to sell it. It varies in each situation, so he will need to wait and see what happens after the sale. If the taxes are not provided for in the sale by the mortgage company, that debt is also non-dischargeable.

If the debtor surrenders the home and claims the mortgage in his bankruptcy, any deficiency will be discharged in his bankruptcy. If instead there is a profit on the sale, then the mortgage company must pay the property taxes, before releasing any funds to him. If CA EDD has recorded a lien on the property at the County Recorder's Office, then they would also receive any profit after the property taxes were paid by the mortgage company, and anything left would then go to him. A homeowner has an exemption of up to $100,000 in equity (profit), but the property taxes and CA EDD (if there is a lien) would be paid first before he could keep the rest, even in bankruptcy.

I hope my answer has assisted you and that you will leave me a positive rating!
Customer: replied 1 year ago.

He does plan to consult with a local BK attorney. His house is paid for, he has no lender or mortgage. It is scheduled to sell at auction next month via the tax collector. Collector will get the Tax money at the auction that's why starting bid is $20K. Lets say the house sells for $25K and only $5K is available for the $18K debt that EDD claims they're owed. Can EDD go after my friend after his bankruptcy for the remainder balance of $13K?

Expert:  Elizabeth Prentice replied 1 year ago.
Thank you for the additional information. In the scenario you have presented, CA EDD would only received the $5,000 if they had filed a lien on the property. If they had not, any profit would go to your friend. You can find out if there are any liens on a property by going to your local county recorder's office. They will be able to run a lien search and can print you copies of any lien on the property for a fee. Fees at a county recorder's office are typically a few dollars per page.

I hope my answer has assisted you and that you will leave me a positive rating! Please feel free to ask for me by name in your question, should you have any questions in the future.
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 170
Experience: Managing Attorney for one of the largest consumer bankruptcy firms in America.
Elizabeth Prentice and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.
 
 
 

Related Bankruptcy Law Questions

Chat Now With A Bankruptcy Lawyer
Elizabeth Prentice
Elizabeth Prentice
Bankruptcy Lawyer
170 Satisfied Customers
Managing Attorney for one of the largest consumer bankruptcy firms in America.