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 socrateaser Your Own Question
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39144
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

My wife and I are working with IMC Financial to avoid foreclosure.

This answer was rated:

My wife and I are working with IMC Financial to avoid foreclosure. Our Mortgage holder is Sun Trust Mortgage. I am the bread winner in our home and I have been laid off since early January. We are not impressed by the amount of information including credit reports to decide of the loan is worth saving. Is there a program that would fit our circumstance and buy us more time to find a job? I am bring in about 75% of my previous income and I am told that it is not enough. Property values have dropped 30-40% in our area. We are not in foreclosure but time is running out. We had plans to stay in our home for many years and we had our first children (twins) in November 2008. I have been told to file for bankruptcy but do not know how the differences between chapter 7 or 13. I own my business and the holdup on getting paid is due to unpaid Federal grants. The grants have been approved and are in the "approved and will be paid soon" bucket. Funny how the circle completes itself.

Your goal is to hope and push for the passage of HR 1106, which is currently stalled in the Senate Banking Committee. This bill would permit a bankrutpcy judge to force lenders to accept lower principal balances on their loans as part of a Chapter 13 bankruptcy. And, since you apparently have income, and you want to save your home, you would need Chapter 13 rather than Chapter 7, plus this new law to save your home.


There really is no other option (although there are loads of businesses pushing other options).


Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.

socrateaser and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
What would become of our assets filing chapter 13? Would our house, our cars, 401K accounts be saved? And if so, what strings are attached to future income or assets? If you could direct me to a site or explain the chapter 13 process I would greatly appreciate it.

The object of Ch. 13 is to spread your payments out so you don't lose any assets, and force any unsecured creditos to accept no more than they would receive were you to file Ch. 7 (total liquidation). Generally, retirement accounts are exempt from creditors, so you would keep that money. As far as future income goes, you have between 3-5 years to pay off the Ch. 13 plan, and if you succeed, then you are discharged from whatever debts remain, and you go forward from there.


If you can't make the payments, then you will either be dismissed from Ch. 13, because your actions were in bad faith, or converted to a Ch. 7 (or discharged directly from Ch. 13), which would liquidate all of your non-exempt assets.


For a discussion of the Ch. 13 rules you may want to pick up a copy of one or more of these publications: