I think my attorney cheated me...

[sunnycali]

I filed bankruptcy Nov. '04. At the time, I had thought my home value was around $320K. A house across the street from me was selling their home for $315K and it's a little bit smaller. My loan balance was $175K. My attorney had told me at the time my house was approx. $265K and that I would be fine filing bankruptcy. I found out last week my home value is $330K and the trustee will make me pay the diff. or sell the home; that was only 2 months back. I don't think my home value could have increase $70K equity. I think my attorney wanted to make a quick buck and now I might be losing my house.
The difference after selling my home with me getting my exemptions, pay off loan, pay sales agent is approx. $54K. The attorney said the trustee is willing to take out 1/2 and pay the creditors and give me back the other 1/2. What is the process from here? Can I negotiate with the trustee to maybe take 30% for the creditors? My attorney is not much help now and hardley returns my calls. The attorney said the trustee will file a "CLAIMS BARR DATE." What is the time frame of this and next procedures? Is this when creditors are given a time frame to file a claim? My attorney doesn't even know this. My attorney said many times creditors don't even file a claim, but what are the chances? when it comes to MONEY, there's always time to file a claim.

[HHM]

If you thought your house was worth $320K before filing BK, and come to find out it really is worth $330K, what is the problem. You knew what it was worth, so if you had put your estimated value (the $320K, you would be in the same boat).

Sounds like your attorney was trying to get you through by underestimating the house and see if it would fly to get you in under the equity exemption.

You might want to consider a voluntary dismissal of your case, but that will mean you cannot re-file a BK for six months if you want to keep the house (but that assumes your are current on all mortgage payments)