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: 39047
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

I am current on my house, but upside down by 1 million. We

This answer was rated:

I am current on my house, but upside down by 1 million. We have talked to a bankruptcy attorney and we only qualify for chapter 11. I am a neurologist. Be due to medine changes we have a negative net worth ans does my practice. We would like to get a smaller house before we stop paying on the current. Our plan is to purchase a smaller house 20% down with gift from parents and then pay the current house for several months before we stop paying. We will try a short sale with the bank since they will lose alot in a forclosure.
I am told that personel chapter 11 takes longer than chapter thirteen. If we don't file for 2-3 months after stop paying say april 2011. Does that protect the gift. With the real estate market the way it is, the current bank would get nothing.
Could they force the other bank to call the loan 30year fixed the new smaller house that We purchase with the gift? I would be paying timely on it and could also put my 20 year old son on the title in addition to my wife . Would this offer protection?

Would paying the first full or partial and not the second or vice-versa pospone foreclosure ?

I am 60 years old and have been recently diagnosed with prostate cancer. Good prognosis but need surgery which will stop income from my practice by at least 50%.
I have disability insurance which will make up the rest. Can they try to garnish my disability income or use my life insurance proceeds to satisfy judgements.Would these proceeds be turned over to thre chapter 11 trustee if I pass away?

Thanks for you help I am a Neurology expert on JA. Dr. S

The gift property will be part of the bankruptcy, so I don't know how this will help you. Your creditors could ask the court to sell the house and use the money to pay your debts.


Disability income is exempt, as is life insurance, but not if you use the cash value for your own benefit.


In Chapter 11, you are the trustee, and it's up to you to craft a plan that will work. Chapter 11 is quite expensive. It's not clear from your facts that you cannot qualify for a Chapter 13. Moreover, if you are underwater with everything, then the only thing that you would prevent you from filing Chapter 7 would be if you have non-retirement account assets (brokerage/investment/CDs/etc.) of substantial value.


Way too little info in your post for any definitive analysis. Not sure how much you want to reveal in this public forum.


Most bankruptcy lawyers give free first consults and a good one will have a computer system capable of analyzing your financial circumstances.


For a bankruptcy lawyer referral, see: and


If I can help, I will -- just let me know.


NOTICE: If you are on a subscription plan, your clicking Accept does not generate any additional charges to your user account. It only indicates your satisfaction with my answer.

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 other Bankruptcy Law Specialists are ready to help you