Please help me with my story

[LSUTiger32]

The surplus (if any) from the sale of the property -- unless he can find some way to exempt it -- becomes property of the estate and is distributed to general unsecureds.

I don't know if I'm understanding the facts right either.

I guess I am wondering a few things:

1. How long would I have to wait to sell it to have it not make a difference anymore? Discharge? Closing?

2. If I can spend the proceeds on living expenses, how long do I have to spend it? Louisiana exemptions suck so I am not sure what I would do as far as protecting it.

3. The other option would be selling it to my brother because he is the only one with the cash to get it to the point it will pass inspection and then let him sell it to it purchasers. I am not trying to hide anything here, the house is not worth what we are getting for it right now because right now it will pass inspection due to plumbing issues. (The plumbing is fine it works it just was not done correctly I found out recently. Most of it is minor but there are a few major issues as far as new code is concerned.) How would something like that work with the TT.....I put a value on the house but right now it is basically worthless since it can't pass inspection.

[MSbklawyer]

oh, that's right... so essentially, the sale of the property wouldn't have any impact, right? or am I off base here?

The surplus (if any) from the sale of the property -- unless he can find some way to exempt it -- becomes property of the estate and is distributed to general unsecureds.

I don't know if I'm understanding the facts right either.

[fooked]

oh, that's right... so essentially, the sale of the property wouldn't have any impact, right? or am I off base here?

[MSbklawyer]

two things come to mind initially... can you hold them off on the purchase?

and if not, put money into an IRA?

He's already filed, I think.

Long story short, LSU, with respect to real property, you can't just SAY that the ownership of it or the debt on it is not all yours and make it so. The legal papers filed on the property: the deeds, the deeds of trust, the notes, the mortgages &c are the ONLY thing that matter. If your family member loaned you the money with recording the proper papers to secure the debt, then the second you filed for bk, that family member became a general unsecured creditor.

[fooked]

two things come to mind initially... can you hold them off on the purchase?

and if not, put money into an IRA?

[LSUTiger32]

Was the debt on the property you kept evidenced by a note and a properly recorded mortgage or deed of trust? If not, wouldn't the trustee be right -- that there was no lien on the property when you filed for bk? And that therefore, the sale proceeds would belong to the estate?

Oh yeah, it has a loan on it right now for $63,000 and it has for 2 years now. We put $16,000 down in escrow to cover the first $16,000 in repairs and we've put no less than $10,000 since. We really aren't making anything. Now I am sure that doesn't matter, if there is money the TT is going to want it. The problem is that not all of it on this one is mine. The biggest reason I am re-affirming it is that it was the best of the properties as far as what was owed and it is with the bank that holds my primary residence. I was afraid to piss them off for fear of losing my home.

[MSbklawyer]

Need some serious help guys. I had 4 properties and I am surrendering three of them other than my personal residence. The one I kept I only kept because I owe a family member some money on it. I had some people wanting to live in it for a while but now their parents are going to co-sign to buy it! This is good news but now I think I may be in deep doo-doo. It's only in my name so according to the trustee it's all my money. It still needs some serious work to get it read to pass an inspection but they said they want to move forward now. I have no idea what to do. My attorney had said a while back I can do anything as long as I spend the money on living expenses. Well only Donald Trump has $25,000 worth of living expenses a week. Does anyone know how long I would have to spend it? This will obviously kill my 341, huh? HELP!

Was the debt on the property you kept evidenced by a note and a properly recorded mortgage or deed of trust? If not, wouldn't the trustee be right -- that there was no lien on the property when you filed for bk? And that therefore, the sale proceeds would belong to the estate?

[LSUTiger32]

Bump for help, I think people are tired of clicking on my thread. I hate starting new ones.

[LSUTiger32]

Need some serious help guys. I had 4 properties and I am surrendering three of them other than my personal residence. The one I kept I only kept because I owe a family member some money on it. I had some people wanting to live in it for a while but now their parents are going to co-sign to buy it! This is good news but now I think I may be in deep doo-doo. It's only in my name so according to the trustee it's all my money. It still needs some serious work to get it read to pass an inspection but they said they want to move forward now. I have no idea what to do. My attorney had said a while back I can do anything as long as I spend the money on living expenses. Well only Donald Trump has $25,000 worth of living expenses a week. Does anyone know how long I would have to spend it? This will obviously kill my 341, huh? HELP!

[LSUTiger32]

Some of the things the attorneys are requiring are mind boggling!!! Maybe there is a difference in States? My attorney did not ask for any credit card statements . I was required to send 2008 tax returns, bank statements as of the date of filing, copies of auto insurance, current mortgage statements, most recent real estate tax bill, and after the 341 the Trustee asked for statements of my IRA accounts back to one year prior to filing and through one month after filing. I also provided a statement as to my social security payments as that is now my only income. That was it. Date by which any objections by anyone must be filed is in September.

Well I have noticed with my attorney that she asks for a lot stuff to double check things and prepare me. For instance, the credit card bills she wanted to check the addresses to make sure the notification was going to the right place. The utility bills were for the 341 incase I have to prove it. She gave me everything back in a folder and so obviously a lot of it was to be prepared for the 341.

[want2save]

Some of the things the attorneys are requiring are mind boggling!!! Maybe there is a difference in States? My attorney did not ask for any credit card statements . I was required to send 2008 tax returns, bank statements as of the date of filing, copies of auto insurance, current mortgage statements, most recent real estate tax bill, and after the 341 the Trustee asked for statements of my IRA accounts back to one year prior to filing and through one month after filing. I also provided a statement as to my social security payments as that is now my only income. That was it. Date by which any objections by anyone must be filed is in September.

[LSUTiger32]

Hey Congrats on filing. Are you feeling better yet?

Oh man, it's like a huge weight has been lifted. I really feel better now than I have in a long time. It's really amazing how quickly things got better just in the last four weeks. It still hurts and it's bittersweet but the relief is worth it. I just hope things continue to go smoothly. If so, we will be discharged Thanksgiving week and I will have plenty to give thanks for, specially our fresh financial start.

[LSUTiger32]

I'm right behind you on the filing... waiting on the average to drop since I'm not receiving rental income anymore either... thanks for this thread... you're not alone..

Thanks man, it's tough. Katrina really did a number to me in more ways than you can ever imagine. It's like a bad dream that never ends! Hopefully this will help put all the mistakes to rest once and for all.

[eddiep]

Hey Congrats on filing. Are you feeling better yet?

[fooked]

I'm right behind you on the filing... waiting on the average to drop since I'm not receiving rental income anymore either... thanks for this thread... you're not alone..