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  • Lifting the automatic stay in chapter 7

    Like many others in this forum, I need to learn a bit about filing for
    bankruptcy - at least enough to evaluate attorneys and anticipate the
    results of filing. My thanks to Brett and Tom and others who have
    shared their expertise and experiences.

    My wife and I operate a small business out of our home. Over the past
    two years, many of our clients became slow pay, and we've used lines
    of credit to keep things afloat while seeking additional clientele.
    About 9 months ago we lost a large account (45% of our business) . . .

    We'd like to stay in our house of 20 years, but we're nearly 90 days
    past due with our mortgage. Will the automatic stay provide any
    significant delay in the bank initiating foreclosure? In an ideal
    world, we'd file Chapter 7 and would have a bit of time to save money
    while the bank gets the automatic stay lifted, or waits for the
    Chapter 7 discharge. Since I'm in my ideal world, the bank wouldn't
    add any additional fees or penalties while the stay is in place.

    Any clues as to what to expect from the real world? I understand that
    Chapter 13 provides restructuring, but our fluctuating income isn't a
    good foundation for a 36 month, rigorously supervised repayment plan -
    and I'm concerned that we'll end up among the 70% who fail in Chapter
    13.

    Thanks -

  • #2
    Lifting the automatic stay in chapter 7

    On 4 May 2004 18:03:49 -0700, Your mileage may vary <[email protected]> wrote:
    : Will the automatic stay provide any
    : significant delay in the bank initiating foreclosure?

    No, I wouldn't count on any meaningful delay, at least not in my
    district. But you're a googler and heaven knows where you are. YMMV.

    Comment


    • #3
      Lifting the automatic stay in chapter 7

      Will the automatic stay provide any
      significant delay in the bank initiating foreclosure?
      I will tell you my real world experience: Absolutely it will. They
      can't foreclose until they get a lift to the automatic stay...now, it
      is certainly possible the judge will lift the stay (depending on the
      situation...especially in a Chapter 7 you'll have to get caught up on
      those payments)...

      but as for me...I didn't want my house in my bankruptcy. I actually
      moved out after filing...I had no choice...I was in such dire shape I
      couldn't even afford to drive from my home to work anymore...

      so I packed up, moved to an apartment in town, walked to work...well,
      you get the idea, even with my house completely vacant it took them
      four months to get possession. Filed in early July, the stay was
      lifted in November.

      Usually, when they have to foreclose on someone, it takes many
      months...I've heard in some cases even a lot longer.

      My feeling, is the bank has some legal maneuvering available to it,
      but they probably want you to keep the house, after all, post
      bankruptcy you'll have less debts and therefore a greater ability to
      pay for the mortgage....they just want their money, after all, and I
      know lots of people who survived bankruptcy with their house...but, of
      course, that depends on your individual situation.

      Comment


      • #4
        Lifting the automatic stay in chapter 7

        Hi Robert -

        Thanks for sharing. Since posting, I talked with a couple of
        bankruptcy attorneys, and they've given different answers to that
        question. One said they would probably have the stay lifted in a
        couple of weeks, and a second indicated they would probably not bother
        lifting it - they'd just wait until the case was discharged.

        Stay tuned -


        [email protected] (Robert) wrote in message news:<[email protected] com>...
        Will the automatic stay provide any
        significant delay in the bank initiating foreclosure?
        I will tell you my real world experience: Absolutely it will. They can't foreclose until they get a lift to the automatic stay...now, it is certainly possible the judge will lift the stay (depending on the situation...especially in a Chapter 7 you'll have to get caught up on those payments)... but as for me...I didn't want my house in my bankruptcy. I actually moved out after filing...I had no choice...I was in such dire shape I couldn't even afford to drive from my home to work anymore... so I packed up, moved to an apartment in town, walked to work...well, you get the idea, even with my house completely vacant it took them four months to get possession. Filed in early July, the stay was lifted in November. Usually, when they have to foreclose on someone, it takes many months...I've heard in some cases even a lot longer. My feeling, is the bank has some legal maneuvering available to it, but they probably want you to keep the house, after all, post bankruptcy you'll have less debts and therefore a greater ability to pay for the mortgage....they just want their money, after all, and I know lots of people who survived bankruptcy with their house...but, of course, that depends on your individual situation.

        Comment


        • #5
          Lifting the automatic stay in chapter 7

          When I did a Chapter 7 in the past (in New Jersey), I had two properties --
          one was my primary residence with some equity and the other was my secondary
          residence with little or no equity. The mortgage company for the primary
          residence got the automatic stay lifted within about 60 days. The other
          mortgage company didn't do anything and never even foreclosed until long
          after the Chapter 7 discharge.

          Once the automatic stay was lifted on my primary residence mortgage, I was
          able to keep making payments on that mortgage and brought the mortgage
          current. That prevented foreclosure on that property, which I wanted to
          keep. I was able to make the payments because I didn't have to pay any of
          my other unsecured debts which were going to be discharged in the Chapter 7.

          Another option would be, if you can stall the foreclosure until after the
          Chapter 7 discharge, you can then immediately do a Chapter 13 to keep the
          property.

          My case was in New Jersey where I elected the federal exemptions. My
          primary residence had less than the federal exemption limit in equity. That
          is an issue you will need to figure out if you want to keep your property.

          Good luck.

          "Your mileage may vary" <[email protected]> wrote in message
          news:[email protected] om...
          Hi Robert - Thanks for sharing. Since posting, I talked with a couple of bankruptcy attorneys, and they've given different answers to that question. One said they would probably have the stay lifted in a couple of weeks, and a second indicated they would probably not bother lifting it - they'd just wait until the case was discharged. Stay tuned -

          Comment


          • #6
            Lifting the automatic stay in chapter 7

            Frank -

            Thanks for your input. Our income isn't sufficient to make a viable
            Chapter 13 filing - but it is growing. We're filing for Chapter 7, and
            hoping to get the mortgage caught up (and keep it current).

            Onward -

            "Frank" <[email protected]> wrote in message news:<[email protected]>...
            When I did a Chapter 7 in the past (in New Jersey), I had two properties -- one was my primary residence with some equity and the other was my secondary residence with little or no equity. The mortgage company for the primary residence got the automatic stay lifted within about 60 days. The other mortgage company didn't do anything and never even foreclosed until long after the Chapter 7 discharge.

            Comment


            • #7
              Lifting the automatic stay in chapter 7

              One thing you might want to think about is how much equity you have in your
              house right now, and what the homestead exemption is for the state where you
              are filing.

              When I did my bankruptcy in the past, I first had to purposely let the 1st
              and 2nd mortgage get behind on the property I wanted to keep -- before I
              filed for bankruptcy. The reason why I did that was to temporarily increase
              the amount due on the mortgages so the amount of equity in the property
              would be below the homestead exemption. Then, after I filed, I was able to
              gradually bring those mortgages current. In other words, it might turn out
              to be to your advantage that your mortgage is a few months behind on the
              date when you actually file the Chapter 7.

              But it sounds like you are already doing all of the right things such as
              going to bankruptcy attorneys before doing anything.

              "Your mileage may vary" <[email protected]> wrote in message
              news:[email protected] om...
              Frank - Thanks for your input. Our income isn't sufficient to make a viable Chapter 13 filing - but it is growing. We're filing for Chapter 7, and hoping to get the mortgage caught up (and keep it current). Onward -

              Comment


              • #8
                Lifting the automatic stay in chapter 7

                That is a very sophisticated approach to Bankruptcy. It is called
                Exemption planning and it is completely legitimate.

                You have to be very careful these days, especially in New York which
                only has a $10,000 homestead exemption.

                The Real Estate Market is so hot, that some Trustees are actually
                selling the property if there is excess equity.

                You should take full advantage of the Bankruptcy Laws.

                Best of luck to you.

                Jacob

                http://www.silverbankruptcy.com





                "Frank" <[email protected]> wrote in message news:<[email protected]>...
                One thing you might want to think about is how much equity you have in your house right now, and what the homestead exemption is for the state where you are filing. When I did my bankruptcy in the past, I first had to purposely let the 1st and 2nd mortgage get behind on the property I wanted to keep -- before I filed for bankruptcy. The reason why I did that was to temporarily increase the amount due on the mortgages so the amount of equity in the property would be below the homestead exemption. Then, after I filed, I was able to gradually bring those mortgages current. In other words, it might turn out to be to your advantage that your mortgage is a few months behind on the date when you actually file the Chapter 7. But it sounds like you are already doing all of the right things such as going to bankruptcy attorneys before doing anything

                Comment


                • #9
                  Lifting the automatic stay in chapter 7

                  "advocate" <[email protected]> wrote in message
                  news:[email protected] om...
                  That is a very sophisticated approach to Bankruptcy. It is called Exemption planning and it is completely legitimate.
                  Thanks. I learned about it from a book called How To File For Bankruptcy
                  (Nolo Press, http://www.nolo.com ). I bought the book and read it just to
                  get an idea of all of my options, and I learned a lot. I even considered
                  moving to a more favorable state such as Florida or Texas, but that didn't
                  make sense in my case. I did learn that there is a lot more to bankruptcy
                  than most people realize.




                  Comment


                  • #10
                    JK Harris and Company?

                    Has anybody dealt with JK Harris in regards to tax resolution issues? Is
                    this a reputable outfit? Thank, Jim


                    Comment

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