Amendment??

[rebncnv]

Just filed for Chap. 7 on Oct. 12th. and have a couple of questions needing answers or guidance. First, is there such a thing as an amendment that can be filed to realign and correct income and debts? I would like to have this available prior to the 341 meeting, whenever that may happen! My second question is about inheritance from my father. He invested in land with a mobile home on each property in Florida then sold these to private individuals holding the loan (no bank or lending institution was involved). After his death in 1998 we three sons inherited the properties equally and took over the mortgages. I receive a small amount of money erratically during the year from this source. Is this an area where the courts could disrupt the ownership and demand payment to help in my debts? I have over $45,000 in credit card bills. Is this more like a trust??

[StaciMM]

Regarding the properties, I'm really not sure. Your dad owned them, then sold them, then you inherited part of the property? If you have ownership interest, the asset will need to be listed and if you can't exempt it, you may lose it.

You can file an amendment-check w/ your court clerk for specifics. (They are a good resource for procedural info in your area-other areas may do things differently.)

[AAAArt]

A trust would have to be a legal trust which your father would have had to have executed before his death. My guess is that it is an asset. The question woould revolve around what the value of a 1/3 interest would be. Who would buy it? How much would it be worth? Is it assignable (might turn out to be a pertinent issue...much better for you if it is not assignable).
If you did not file pro se, you should ask your attorney.

[rebncnv]

It seems to me that since the properties are all tied up in mortgages and are not owned by any one person but three that the question of whether they could be sold is irrelevant??? However, since there are payments being made to me from this 3 way ownership, prehaps this would be something the trustee would consider as income to pay the debtors (credit cards)?

[StaciMM]

If you receive $$ from it periodically, it would be fair to call it income. About how much do you receive each year? Divide that by 12. Does it change your bottom line?

[rebncnv]

The income increases approximately $200 (on average) per month and was listed as "Income other than from employment or operation of business" area of the filing. So it is a factor but from what I have come up with on Schedule J I am spending as a wash for each month (not counting the credit card bills)!

[quest42]

Trace the title to the property...

Your income is from payments on a loan, yes?

The new owners have title -- and you only have a mortgage interest (lein) in the property -- they are paying you on that loan -- yes???

If so, you'd have an income, but the property is NOT your asset, it would seem to me, if I understand what you wrote.

If I were you, I'd file an amendment -- to make sure the income is reported properly on your petition. Sounds to me like you do NOT own the asset, just the income from the loan, rignt?

What happens if the owners stop paying you on the loan?

Check with the county recorder to find out how the title is recorded for the property, and the mortgage lien. It may cost you a few dollars to get a copy of the deed, and the lien should be attached to it.

A friendly, helpful real estate agent, mortgage broker, escrow agent, banker, paralegal, or attorney can also look it up for you, by doing a search on your father's name. Any property he had ever owned in that county would show up, and you can trace title from there forward.

Your name may also come up in the chain of title, and the current owner's name, of course...

[rebncnv]

First of all, thank you for the responses, I have found some comfort in reading others experiences and how this has been affecting their lives. Many I can really identify with!
The inherited properties do have mortgages and I believe all have liens recorded, since each has a mobile home on them. The mortgages are held by we three brothers as a group with my middle brother as the assigned person with power of attorney. The monies received are claimed each year as interests, I think on a 1099 form but don't have it in front of me to check. When the tax advisor did my paperwork to file Ch 7 he listed it on the Form 7 as "2. Income other than from employment or operation of business". He put as the source my brother with the power of attorney, and called it "Trust Account...Interest Income".
On the Schedule I he did not list the income as part of my income. Probably because it is erratic at best and is never monthly received.
I guess I am probing for answers to whether this is something that could be taken from me and could also harm my 2 other brothers? Also, since it is tied up in mortgages and originally came by way of a Trust account then should it be listed as it is now, a trust?
I do plan to file a Amendment because the income and expenses were not high enough in the first place.

[Minnymouth]

I don't believe the Trustee can bother the actual "trust" but I think he can decide if the "trust income" can be taken as extra money (disposable income). Depends on your income vs expense report for the Trustee.

If this is counted as part of your monthly income, you may be okay....

Can you sell the part of the properties that is yours if you wanted too???? That is the big question??? If you can, then it probably is an asset to you.

Minny

[rebncnv]

No I can't sell any of it since there are mortgages signed by people living in the homes, plus my brothers are co-owners, so to speak, and thus what affects one affects all, good or bad. If someone just ups and leaves we all are left with a mess, or if there is deliquent payments then same thing goes, we all loose and share the expense of going after the person. No this whole parcel of different lots and mobile homes are pretty tied up. Yes I will explain that my part of the interest is income, but even with what little I receive, it is nowhere near enough to pay the bills PLUS the credit card sharks!! So I have been doing balancing acts for a year now or so between the cc companies.

[rebncnv]

No I can't sell any of it since there are mortgages signed by people living in the homes, plus my brothers are co-owners, so to speak, and thus what affects one affects all, good or bad. If someone just ups and leaves we all are left with a mess, or if there is deliquent payments then same thing goes, we all loose and share the expense of going after the person. No this whole parcel of different lots and mobile homes are pretty tied up. Yes I will explain that my part of the interest is income, but even with what little I receive, it is nowhere near enough to pay the bills PLUS the credit card sharks!! So I have been doing balancing acts for a year now or so between the cc companies. You may know what I mean, paying Peter with Paul's money, or something like that!!

[quest42]

So, what you OWN is a mortgage interest in the property, not the property itself, unless your mortgagee fails to make payments and then you foreclose... it is complicated.

You are getting some cash flow out of that situation, an income to you.

Remember, the trustee is looking to take a percentage of any assets that are not exempt... mortgages can be bought and sold... banks do it all the time...

The income side is also to be considered...
You paint a picture that the owners are not reliable in making payments, and the payments are small, and you only have a partial share. Maybe that will dull the trustee's interest in taking action?

Just throwing out some ideas... better see a lawyer and an accountant!