Bankruptcy Law

Bankruptcy law questions? Ask a bankruptcy lawyer.

Ask a Lawyer,
Get an Answer ASAP!

I bought trustee deeds from a Chapter 7 bankruptcy trustee…

Customer Question
I bought trustee deeds...

I bought trustee deeds from a Chapter 7 bankruptcy trustee years ago, and the title of the properties are lised***** Anywhere, USA 12345 subject to the existing claims and creditors either known or unknown. THese interests were purchased and the bankrutpcy trustee told me that I had legally purchased all income that I could generate via rents with no legal ramifications from the creditors. He also told me that if I were to file chapter 11, that there is some flexibility with regards ***** ***** to the fraudulent conveyance rules because I am not really an owner because I have not perfected the ownership issues. So even though I am listed in the county as being the owner, I am not really an owner because the real ownership and control really belongs to the creditors, of which I am not a party to these contracts, who still retain their rights to foreclose as their remedy for non-payment. My purchase did nothing to affect their remedy. The main purpose of the transaction is to give me ownership to rent the house until foreclosure and to give me standing to settle the liens as the owner, that is what I paid for.

Lawyer's Assistant: Since laws vary from place to place, what state is this in? And has any paperwork been filed?

Oregon 9th circuit

Lawyer's Assistant: Has anything been filed or reported?

I was also told that because my interest is not perfected and all of the debt is non-recourse and unsecured being derived from another taxpayer, that fraudulent transfer exceptions are afforded to me if the Chapter 11 should not be confirmed, since this is an effort to try something different. My goal here is to see if I can take these equitable interests and develop a plan that provides the creditors with more recovery than just letting them foreclose. I am thinking about filing a Chapter 11 and the first couple of attorneys I met with had any clue as to what I am talking about so I am doing some research.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

The trustee that sold me these interests is now a judge in the 9th circuit and I can't talk to him about it anymore.

Submitted: 3 months ago.Category: Bankruptcy Law
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Customer reply replied 3 months ago
would it be faster to talk on the phone?
Answered in 9 hours by:
3/12/2018
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago
DamienJD
DamienJD, Attorney
Category: Bankruptcy Law
Satisfied Customers: 4,833
Experience: Attorney. Well versed, understanding, friendly
Verified

Hello: My name is ***** ***** I am an attorney. Please give me a moment to review your question. I may ask some questions to clarify issues.

Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago

Is anyone challenging the former trustee's interpretation? Have you been in contact with the creditors?

Ask Your Own Bankruptcy Law Question
Customer reply replied 3 months ago
not a good time to talk getting the kids up and around. I need to be out of the house with them in an hour. Too chaotic to use phone.If we can power through this way, its best for now, I do want to learn this
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago

Okay. You ask whether something could be worked out with the creditors rather than waiting for a possible foreclosure action. So, I wonder whether you spoke to the creditors to determine any payoff amounts.

Ask Your Own Bankruptcy Law Question
Customer reply replied 3 months ago
nobody is challenging the US Trustees interpretation but me. My case would be different, concerned if I put assets in that I am on title and they are really no more than an equitable interest with a right to settle the liens of the debtor of the estate I bought them out of. I want to make a covenant that I won't transfer any asset beyond my 6 LLCs, that I want to treat like a consolidated entity with which I attempt to settle these liens and obtain legal title.I worry about what happens to me if I make a mistake or get a back ruling or can't confirm, do these assets then go to Chapter 7? I purchased the right to income until foreclosure under a court order does this go away upon becoming part of the estate.
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago

You mention that you want to make a convenant. With whom? Also, is the original bankruptcy case still open? Or has it been dismissed or discharged?

Ask Your Own Bankruptcy Law Question
Customer reply replied 3 months ago
I have commingled these assets since day one. I have each entity segregated by servicer and asset, date owned. I am the sole owner, of all entities and all entities acquired the same assets have the same modelto settle the equitable interests and perfect them.If I go a year and it gets dismissed how will the income be treated? Could I transfer it back to the companies and use it to settle the rest of the homes? If there is a covenant not to ever moved the collateral outside of my entities. The creditors have zero claim to my income but they can foreclose and get paid, to the extent of their liens, I keep the rest.
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago

Are you saying you want to enter into covenants and agreements with the creditors?

Ask Your Own Bankruptcy Law Question
Customer reply replied 3 months ago
I have faced stiff uphill battle with these interests that I have purchased - about $40,000,000 of homes. Local creditors counsel has blackballed me saying they don't like my model. I am trying to bridge the gap and this just came to me last night, a covenant so that they know that I am not going to transfer the property away unless I perfect title. I need to start somewhere, I don't see too much cooperation from local counsel, I made their jobs difficult spending countless hours working on my files that the lowest level firms were on a flat fee compensation agreement with the servicer.
Customer reply replied 3 months ago
I want to use the Chapter 11 to settle these liens as I see no other way to do this. But what if I do find another way? The protective covenant would be tied in with being treated as a consolidated group for income tax purposes to extends the stay to all of my LLCs and only have to file one BK.
Customer reply replied 3 months ago
i want to hammer home my entire goal is to settle so that I don't get inundated with bad faith filing motions from the other side that can get expensive to respond to
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago

If you cannot get the creditors on board, I am afraid you are right that this will be a stiff uphill battle. So, even if you attempted to file a Chapter 11 to hammer this out, it appears you will have deep opposition from the creditors. Unless you can get the creditors to agree to the protective covenants, etc. you would have difficulty utilizing your proposed plan.

Ask Your Own Bankruptcy Law Question
Customer reply replied 3 months ago
except I firmly believe that once they see this as we are primarily a judicial foreclosure state right now and the junior lien holders get nothing, I am betting it wont take too long to get traction especially since the first are really for the most part already fully secured.
Customer reply replied 3 months ago
Do you have the code sections handy that deal with equitable interests?I guess my question to you is, the income my real estate interests kick off, is mine now - does that carry over the estate?Assuming no criminal intent of any kind do you see a bankruptcy judge sending my assets to a chapter 7 liquidation? If I cant get a plan approved?
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago

I would have to do research on the code and/or income from real estate, etc. That is very complicated. It may be beyond my area of expertise.

Ask Your Own Bankruptcy Law Question
Customer reply replied 3 months ago
i would pay today, I just don't have time now and want to submerse myself into this
Bankruptcy Lawyer: DamienJD, Attorney replied 3 months ago

You can touch base tomorrow. It would be a premium service because of the time it would take. Take care.

Ask Your Own Bankruptcy Law Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a bankruptcy lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Terry L. Your Own Question
Terry L.
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2,717
2,717 Satisfied Customers
Experience: Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

Terry L. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,717 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I had creditors meetings for chapter 7 april 19 So It should
I had creditors meetings for chapter 7 april 19 So It should be resolved 2 months later. When can I safely cash out of my 401k. many thansk … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
If I know I am going to chapter 7 is it okay to still use
If I know I am going to chapter 7 is it okay to still use credit cards if I pay them in full each month? I have 4 credit cards I do not use (HIGH BALANCES), I have 2 that have zero balances but both c… read more
Terry L.
Terry L.
Attorney
2,717 satisfied customers
Filed chapter 7 in 9-2016. My house (no mortgage) sold a tax
Filed chapter 7 in 9-2016. My house (no mortgage) sold a tax auction sale in 5-2017 for 2013, 2014, 2015 and 2016 property tax debt. … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
My home was discharged in 2009 in chapter 7. Was never
My home was discharged in 2009 in chapter 7. Was never reaffirmed. Went through medical issues in 2015 and fell behind. Tried doing modification yet bank refused f5 times all different reasons. Now ho… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I need to reopen a chapter 7 and add a judgment that was
I need to reopen a chapter 7 and add a judgment that was missed in 2009 … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I received a chapter 7 discharge in a no asset case. I
I received a chapter 7 discharge in a no asset case. I didn't include a Bank of America account that I recently saw on my chexsystems report. Does that mean it won't be discharged. FYI I live in Ohio… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
BANKRUPTCY: Debtor filed Chapter 7 bankruptcy and included
BANKRUPTCY: Debtor filed Chapter 7 bankruptcy and included Garnished wages as their assets in SCH A/B, and claimed as exempt in SCH C. The funds were garnished within 3 months of filing.Is there a for… read more
Terry L.
Terry L.
Attorney
2,717 satisfied customers
I converted chapter 13 bankruptcy to chapter 7. will the
I converted chapter 13 bankruptcy to chapter 7. will the bankruptcy stay on my credit report for ANOTHER 10 years? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I filed chapter 7 the day before my home was to be sold in
i filed chapter 7 the day before my home was to be sold in foreclosure on the court steps to stop that from happening. Now if the trustee says i have no equity in my home and abandons it and discharge… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,837 satisfied customers
I may have to file chapter 7 bankruptcy. My debt is
I may have to file chapter 7 bankruptcy. My debt is primarily non consumer debt.[87%]. I was reading US Code 547 c 9 and was also told that since it a non consumer debts chapter 7 that i could transfe… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
In form Form 106A/ for Chapter 7. In any of the sections
In form Form 106A/B for Chapter 7.In any of the sections when they ask you : 1.) Current value of the entire property? 2.) Current value of the portion you own?What do I put for part 2?Example : Singl… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I may have to file chapter 7 at some point in future. Both
HelloI may have to file chapter 7 at some point in future. Both my daughter and my son saved and I helped them buy vehicles. They paid for them. They are older used cars worth 2500 and 3500. Can I tra… read more
Alex Esquire
Alex Esquire
Managing Attorney
Doctoral Degree
153 satisfied customers
In a chapter 7 bankruptcy if there is both a discharged tax
In a chapter 7 bankruptcy if there is both a discharged tax liability and a current tax liability and assets that the trustee will sell. Which tax liability will the proceeds from the sale go to first… read more
Terry L.
Terry L.
Attorney
2,717 satisfied customers
Another question? If a person filed chapter 7 bankruptcy and
Ok another question?If a person filed chapter 7 bankruptcy and remAins paying on vehicle through discharge on bankruptcy, if at some point I stop paying will they repo the vehicle. I know it's not on … read more
Ray
Ray
Lawyer
Doctoral Degree
32,970 satisfied customers
This is a chapter 7 question...the Debtor currently has a
This is a chapter 7 question...the Debtor currently has a garnishment that will be extinguished by the chapter 7 discharge...Does that garnishment still go on Schedule I? How would it be treated on th… read more
Terry L.
Terry L.
Attorney
2,717 satisfied customers
I hired an attorney in IL to file a Chapter 7 for me. Most
I hired an attorney in IL to file a Chapter 7 for me. Most of my LLC's are based in GA. I had since moved to IL for six months so filed in that state. I had a couple items that were sold and the credi… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,837 satisfied customers
Who owns the home Title after Chapter 7 Discharged ?. Pls
who owns the home Title after Chapter 7 Discharged ?. Pls check the Case Number: 17-16948- New jersey case . Maura Ojeda. I need to find if she got CH7-Discharged does she have any rights to stay in t… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
37,395 satisfied customers
If a husband files Chapter 7 bankruptcy, can the husband
If a husband files Chapter 7 bankruptcy, can the husband borrow money from the wife, after the 341 hearing but before the chapter 7 is discharged? … read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,837 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x