okay, what is the problem?

[sofarindebt]

I just received a letter today from my attorney saying they couldn't represent us in bankruptcy? I don't understand? He had trouble understanding the short sale thing, but why is that so bad if we need to get out of this house payment? Will the trustee look at the short sale as fraud or something?

I am not going to be able to sleep now tonight.

[lrprn]

I just received a letter today from my attorney saying they couldn't represent us in bankruptcy? I don't understand? He had trouble understanding the short sale thing, but why is that so bad if we need to get out of this house payment? Will the trustee look at the short sale as fraud or something?

I am not going to be able to sleep now tonight.

You didn't say if your lawyer is a bankruptcy lawyer. Lawyers specialize in areas of law like doctors specialize in areas of medicine. If your lawyer is not a bankruptcy-specialty lawyer, then it's likely that he/she didn't feel they knew enough about the new bankruptcy law that just went into effect a year ago to represent you effectively. (And frankly, if he/she is a bankruptcy lawyer and they don't understand short selling a home, you don't want them as a bk lawyer anyway.)

Make appointments with 3-4 bankruptcy lawyers in your area - most give free half-hour to hour consultations without any obligation to retain them. You can ask lots of questions and find out a lot about what to expect in your case. Also this is a good way to find a good lawyer. If you are wondering what questions to ask to find a good bankruptcy lawyer, check out http://research.lawyers.com/lawyer-i....html?site=537

Short selling a home before filing bk is not fraud, so don't worry about that. Try to calm down - there's a good lawyer out there waiting for you to find him or her, so start the search and good luck!

[HHM]

Did you make any money on the short sale, and what did you do with it?

Did you sell the home below market? What is the home equity exemption in your state? If you sold it at market, would you have exceeded the equity exemption?

[sofarindebt]

A short sale is selling below what we owe

so no, we wouldn't make any money, the bank would lose money.

yes, it was a lawyer who specializes in bankruptcies........doesn't make sense.

[HHM]

so no, we wouldn't make any money, the bank would lose money.

yes, it was a lawyer who specializes in bankruptcies........doesn't make sense.

Ok that is the problem...Did the bank sign off on the deal, typically banks won't sign off their lien unless they are fully paid back. The buyer cannot take clean title unless: (1) the bank signs off their lien, (2) the bank is paid back in full.

Thus, if I had to guess, if you sold the house below what you owe, and were not able to payback the bank...that is where the shadiness comes in that scared off your lawyer.

[FilingOnMyOwn]

Attorneys can't represent you in bk. They can present the filing, than you represent yourself and the attorney can provide counsel to you, but not speak for you. If thats what you meant. If the firm is saying they can't file for you, you can always find another or go pro-se, once you decide the best course of action.