Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Is the property "underwater" (market value less than the balance of the mortgage)?
No. It is not. There is sizable equity in it.
But being that it is overseas the bank overseas might sell it for close to the mortgage value and not for the market value.
As i mentioned in my question though, the equitable distribution is in dispute with my wife denying my joint ownership on it (complex story). Although the matrimonial action started two years ago, the financial trial is still a while off. The trustee is already rasing issues with my filing (she just got a six month extension) so I have to get the amendments right.
All real estate that the debtor has any interest in goes on Schedule A. Line 17 of Schedule B is for personal property only. (Since your ownership is in dispute, the Bankruptcy trustee can keep the case open until the dispute is resolved. Keeping a case open does not mean the discharge will be delayed, though.)
I think this is what you wanted to know. If not, please let me know.Thank you!
Yes - you can enter "unknown" in the "Current Value of Debtor's Interest". But the trustee will want to know the value - even though it is in the midst of a dispute - so you should enter the approximate value in the "Nature of Debtor's Interest in Property" section, along with an indication that your interest is "contingent" and why it is contingent, and also that the property is in foreclosure.
Also enter the balance of the mortgage in the "Amount of Secured Claim" section.