There are really no assets - they operate a cleaning service. I mean, they have some vacuum cleaners and cleaning supplies, but that's about it. They have monthly contracts and pretty much bring in about $7,000 a month gross. From that they pay about $700 out to helpers.
The monthly contracts may be a valuable asset. The supplies would need to be listed as well. The trustee may go through the business records and bank statements.
The mortgage is the original one, dates from October 2006 in the amount of $480,000. Yes, they have tried to renegotiate with the lender.
Are the clients aware that since it is the original mortgage the are protected by California's anti-deficiency statute? They already have no personal liability.
Would it help you to see any more of the schedules or statements in the petition package?
I do not think that additional schedules will help.
I have concerns that they will not be able to successfully complete the Chapter 13 and they will have wasted their money on the plan payments. They could not convert to a Chapter 7 as they would likely lose their business contracts and the Chapter 7 would not provide much of a benefit (just the car deficiency).
I think that these people may be better served by not filing bankruptcy. They could stop making payments on the mortgage and pay the IRS outside of bankruptcy with their disposible income. This could achieve a fresh financial start.
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