Foreclosure, sherrif sale, chapter 13

[Traci]

My brother in law is a landlord of 6 propertys in Wisconsin. He was taken to court for a foreclosurer, however yesterday his tenants got notice of a sherrif sale and my brother in law claims that he is going to do a chapter 13. Can he do this, the court awarded his financial company the foreclosurer back in August of 2004. Keep in mind he does not live in any of the properties that are being forclosed on? He also owns two other properties not in this foreclosurer that people rent and run businesses out of are they in trouble? Very confussed and looking for true answers. He (brother in law) clains he is in touch with a lawyer and will keep all property and no one has anything to worry about?

[Traci]

Sheriff Sale, Chapter 13

My brother in law was taken to court for a foreclosurer with 6 properties that he rents out. The finance compnay won, and now his renter have received a notice of sheriff sales. He does not live in any of the property, owns two others not in the foreclosurer that others run business in, and is saying he is filing chapter 13 going to retain all the property and his renters have nothing to worry about. He lives in the state of wisconsin can this happen

[HRx]

Has his Chp13 petition been submitted to the court yet? Once it's been submitted and approved by all parties involved, then his tenants should be not have to vacate.

Good Luck!

[waziggy]

Quite possibly. Chapter 13 allows for restructuring of the debt with a new repayment plan. Think of Kmart who just bought Sears while still in Chapter 13. What he needs is someone to sign up as the lender providing necessary captial and a workable plan or budget. The exposure in his and all cases frankly is does the budget contain enough contingency cause stuff happens to our best laid plans if you get what I mean. It really is up to whomever is providing the financing and not the court - the court pretty much rubber stamps the budget figuring the backer is making sure the numbers work. Then again, some backers are smarter than the debtor and know going in the numbers won't work but see the value of the assets to go after - here's the point the backer becomes at the direction of the court creditor #1 in the line of creditors (the original creditors volunteer to step back in line for the new pledge of debt payment; the original creditors know a Chapter 13 at least provides some form of expected payment while a Chapter 7 provides a tax write off for bad debts. When a Chapter 7 is discharged and the debt is zeroed out by the court - the creditor only gets a tax write off for the bad debt discharged. Of yea, your brother in law will have a new loan at a higher interest rate (the backers always up the interest; risk v reward).

[Traci]

Nothing has been filed in court yet. I guess he is just atlkingt o a bankruptcy lawyer and he told him that he needed to wait till the sherriff sent something. I quess I just find it hard to believe that he will beable to retain everything.