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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 37037
Experience:  30 years in civil, probate, real estate, elder law
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1. If I file, would that remove basis. I owe a vendor, they

Customer Question

1. If I file for bankruptcy, would that remove basis for lein. I owe a vendor, they are going to file a lein on a property for a product, if I file, would that remove the lein, because the dept is included in the bankruptcy?
I am a sole proprietor.
2. I owe the IRS. What happens there? Any reduction in amount owed?
3. What about my house. We are 3 payments behind, we can make the monthly payments, just can't catch up on the behind ones. Can the court move the payments too the end?.
4. Sick for year and half. Medical bills out of control. Income way way down.
Income, $40,000. This year (net).
Home worth 385,000. Owe $65,000. Homestead
Want to do 7, then 13.
Submitted: 1 year ago.
Category: Legal
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

.

Chapter 7 here would discharge any debts you have here except for the IRS. The IRS would still pursue you.It is possible to resolve an IRS debt for less you would need to contact them to negotiate a reduction.

You would have to reaffirm the house debt and make it up if you want to keep it.You have option of discharging the debt and letting go as well here.If you keep it you will have to make up the payments as part of reaffirmation.The lender may give you more time to do so.

If you file Chapter 7 there would be no need for Chapter 13.The Chapter 7 will discharge all of the debts, you have to reaffirm on the house if you want it or let it go in Chapter 7.

Reference to IRS..

Called offer in compromise..

https://www.irs.gov/Individuals/Offer-in-Compromise-1

I appreciate the chance to help you today.Thanks again.

Expert:  Ray replied 1 year ago.
Expert:  Ray replied 1 year ago.
Expert:  Ray replied 1 year ago.

If you can leave a positive rating when we are done it is always much appreciated.Thanks again for letting me be of assistance today.

Customer: replied 1 year ago.

Thank you for your answers. But what about question number 1. Would the lien stay after filing?

Expert:  Ray replied 1 year ago.

The lien here remains the debt does not.You have to reaffirm the debt if you want to stay.They cannot sue you for the debt but they are allowed to foreclose.You could stay here for up to two years rent free until Chapter 7 and forelcosure/eviction is completed.

Expert:  Ray replied 1 year ago.

You may decide not to reaffirm as this includes late fees, missed payments etc as to what you are reaffirming.Many people decide to let it go into foreclosure.

Expert:  Ray replied 1 year ago.

Thanks again.

Expert:  Ray replied 1 year ago.

You don't get to keep the house here unless you reaffirm the debt, so think about it, the lien here remains and lender can foreclose.

Customer: replied 1 year ago.

The lien is on a client's property. I hired a glass company to install glass on a job, and now I can't pay. They are going to file a lien on the client property, but if I file bankruptcy, will the lien be removed because the dept is under or dismissed by bankruptcy?

Expert:  Ray replied 1 year ago.

Yes it would be discharged and the client can seek to have it removed and sue if it isn't.The debt is discharged here, they cannot enforce it under those circumstances.This is good for the client if you file here.

Thanks again.

Expert:  Ray replied 1 year ago.

If you can positive rate when we are done it is always much appreciated.

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