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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..
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More on Chapter 7.
More on reaffirming the house loan.
Good luck to you.
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Thank you for your answers. But what about question number 1. Would the lien stay after filing?
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.
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.
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.
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?
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.
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