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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have roughly 100,000 total from my inheritance since both

Customer Question

I have roughly 100,000 total from my inheritance since both parents have passed away. I have a home in foreclosure in my name and working on refi on current home which is in my husbands name and we r filing chapter 7 bankrupsy.....any suggestions
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.

Why are you filing Ch 7? What state do you reside in?
Customer: replied 8 years ago.

We tried to sale the home for 2 years in short-sale! I was thrown into this because I have a 5 year pre-payment penalty!

We bought a home in my husbands name that we are in currently trying to get the PMI off which is $689 on top of mortgage soooo it is late as well....working on this....will use some inheritance money to put down on this house so we won't be in a financial bind....


Expert:  Ellen replied 8 years ago.
Have you actually recieved the money fromyour inheritance yet?
Has a deficiency judgment been entered on the house?
Customer: replied 8 years ago.

Yes my sister distributed the money to me in April

No I am right in the middle of has been calling all day so he can list it again ...i will not be able to do a deid in leu per Countrywide/Bank of America.

Customer: replied 8 years ago.

no one has anything tied to the property in my name which is in foreclosure if that is what the 2nd ? meant:)

Expert:  Ellen replied 8 years ago.

It does not appear that a Ch 7 is in your best interest at this time. You would loose the 100K to the bankruptcy trustee.

Instead consider waiting to see if you have a deficiency on the foreclosure and if so, how much that deficiency is. You can then try to negotiate the deficiency. If you are unable to negotiate the deficiency, you can always file bankruptcy at a later date.

Here are the bankruptcy exemptions for Alabama.