Help - Chapter 7 - Buyer Beware

HELP!!!!!!!
Filed Chapter 7, no asset case. Told I would NOT loose my home. NOW I AM!!!
PROBLEM =SURPRISE: Trustee discovered that 7 yrs before the bank/title people failed to record the title to doublewide w/lien at the courthouse. Bank holds lien on property only. (My lawyer did not find this - not working in my best interest.)
Have been told I cannot back out of bankruptcy, must file a 13 to salvage my home (but can't afford high payment - so loose anyways).

I'M LOOSING MY HOME BECAUSE OF A "CLERICAL ERROR" BY LEGAL PERSONNEL- 7 years ago. Under normal Chapter 7 I would allowed to re-affirm on my home.

Now I feel that I'm being "royally screwed" by my lawyer, the bank, the title company, and now the bankruptcy court system.

Any suggestions, comments???

Have just about had a nervous breakdown over this.

Most debts were left over from caring for an elderly parent in my home for 4 years. And have been working two jobs for the last 4 years trying to get out of debt.

Would have never claimed bankruptcy if I thought I would have completely lost my home............WAS TOLD I COULD RE-AFFIRM.....NOT SO NOW

HELP........................

Hello Minnymouth,

Mr. Weiss was nice enough to write this for you (direct quote):



Unfortunately, I don't think I can offer any encouragement.

If the lien was not recorded (something your attorney almost certainly would
*not* research before filing), then your mh is owned free and clear, and is
an asset. You won't get any money from it, since the lender will simply file
a claim as a general unsecured creditor and get paid most of the proceeds,
shared with the other general unsecured creditors.

The only way I see you being able to save things is through a Chapter 13,
but you say you can't afford the payments that would be required.

One possible option: since the bankruptcy court is a court of equity, I've
wondered whether, under these circumstances, the Court could grant alternate
relief allowing you to retain the property. As you correctly note, this
isn't your fault, and you had no way of knowing it when you filed. You did
nothing wrong, and it appears as if you are being punished. You'd need the
best BR attorney in your jurisdiction to mount this argument, and there are
still no guarantees it would be successful, though.

Sorry I can't give you better news.

Take care.

Brett
lawyer@brettweiss.com
www.brettweiss.com

************************************************** ***************
The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

From Kentucky,

Thanks for the info Weiss...
Was told that the Trustee could possibly "abandon" the property back to me if he decides its not worth possible resell. Doublewide is concreted in 8" concrete slab, has solid concrete walls, 4 covered decks attached, and a garage attached to it, also landscaping. All would have to be removed to pull MH out. Also home received substantial damage July 6th in a storm. Will now have to have a complete new roof, and has severe water damage inside from leakage. Have been told if they "try" to pull it out - then they can send it to the salvage yard......cause they will tear it up completely.
Would be in everyones "best interest" if they abandon it back to me - put the title in my name with the banks lien against it - LIKE ITS SUPPOSED TO BE. Then work something out with the other unscecured creditors, if possible.
Yes I feel like I'm being undully punished for someone's "clerical errors" over 7 years ago.
If they try to "pull it out and sell it" - everyone will loose, even the creditors.
Have been told that bank and title company can be held liable for "lender negligence" in the state of Kentucky. Falls under Dept of Public Protection laws and Dept of Finance laws for the state of Kentucky.
Suing these people will not save my home....
The title to my home was a "salvaged title" anyways. The home had been in a previous fire and was refurbished.
My name was never put on the title. The title is still in the developers name.
How can they take something that is "not legally mine yet" and resell it as mine??
The courthouse says "it is not mine" and has "never been mine" the last 7 years - it still legally belongs to the original seller.
If you wanted to go get a lien against me on it - you couldn't! Because legally its not mine in the eyes of the law.
This whole thing has been a real mess! Has been mind boggling and nerve wracking.
I did not enter bankruptcy lightly. It was a last resort for me, after 4 years of trying to straighten things out by myself.
Really hate to loose everything I have worked so hard for - because of a "clerical error" someone made 7 years ago. I loose my downpayment, 7 years of payments, many, many improvements to the property,and no counting the sentimental value of my home.
And the sad part - I was told I WOULD NOT LOOSE MY HOME FROM DAY ONE!!!!! That I could reaffirm on it.

Well - SURPRISE - AND SORRY ABOUT MY LUCK, HUH!!!!!!!!!!

Have been told I can file an amend/appeal if the outcome is totally against me in court and they take my home. Then the case will be looked at by another court.

I feel that my lawyer SHOULD HAVE CHECKED LIEN PAPERS (as important as they are) as part of representing me........
I could have filed by myself - without his help.
If he is not "responsible" for what he SIGNS OFF ON...... What did I hire him for???? He's supposed to be the expert on bankruptcy???

Thanks Weiss for your info - am consulting another Trustee in our area regarding this issue. I feel like my lawyer is "really not concerned about my case anymore", he just wants out of it as quickly as possible now.

PS: I am still holding keys to a "safety deposit box" that NO ONE has asked for either!!! Trustee not doing his job??? Sounds like a lot of people need to pay attention to what they are doing in this case? My box is empty - but I could have $100,000.00 cash in that box...... No one has bothered to check it - I still have all the KEYS!!!!!!!!!!!!!!!

My "fresh start" under Chapter 7 has turned into a "Chapter 7 Nightmare and wipeout".

Any more suggestions folks???