NEED help with SCHEDULE D [Archive]

SR4

06-28-2006, 02:36 PM

On Schedule D (Creditors Holding Secured Claims):

If a homestead is sold at a foreclosure sale recently and there is a deficiency due, it can be listed in a chapter 7 bankruptcy since it was a prepetition transfer and the trustee can attempt to recover it. HOWEVER!
Would it be listed in Schedule D or only in the Statement of Financial Affairs? I am guessing Schd D beucase it is a liability, but others disagree. Please help. Thanks.

SinkingFast

06-28-2006, 06:31 PM

That is an interesting question.

In many States, the Lender, or whoever buys the house at the Foreclosure Auction, does not automatically own the property. Many States have a Redemption period that allows the debtor to "buy back" the house.

Technically, until the Redemption period ends and the Lender completes the En Rem process, a Foreclosed property still legally belongs to the Debtor. As in name on the Deed/Title. Liability for the property. Anyone slips and falls, you better have insurance coverage.

But where in the Schedules to list the debt??!!

That's a very good question.

We haven't filed BK yet. We just went thru Foreclosure, but we had a last minute offer. We were able to dodge Foreclosure. Our house is sold and closed. So I have no clue where our attny was going to list the deficient balance.



	Bankruptcy Forum > Before the Discharge > Exemptions > NEED help with SCHEDULE D PDA NEED help with SCHEDULE D SR4 06-28-2006, 02:36 PM On Schedule D (Creditors Holding Secured Claims): If a homestead is sold at a foreclosure sale recently and there is a deficiency due, it can be listed in a chapter 7 bankruptcy since it was a prepetition transfer and the trustee can attempt to recover it. HOWEVER! Would it be listed in Schedule D or only in the Statement of Financial Affairs? I am guessing Schd D beucase it is a liability, but others disagree. Please help. Thanks. SinkingFast 06-28-2006, 06:31 PM That is an interesting question. In many States, the Lender, or whoever buys the house at the Foreclosure Auction, does not automatically own the property. Many States have a Redemption period that allows the debtor to "buy back" the house. Technically, until the Redemption period ends and the Lender completes the En Rem process, a Foreclosed property still legally belongs to the Debtor. As in name on the Deed/Title. Liability for the property. Anyone slips and falls, you better have insurance coverage. But where in the Schedules to list the debt??!! That's a very good question. We haven't filed BK yet. We just went thru Foreclosure, but we had a last minute offer. We were able to dodge Foreclosure. Our house is sold and closed. So I have no clue where our attny was going to list the deficient balance.