Excess Expenses of over $2500

[HOMEBODY]

Filing tomorrow and excees in expenses of $2500. Will this be an issue for the Trustee since I intent to keep my rental properties.

Reason why I am in excess is because one of my properties is not rented which will rent for $2400 once I have the new tenant signs the lease. He hasnt signed it yet so I cannot count on this and I am thinking that I shouldnt put it in the schedule if I dont have the money.

I dont want this tenant to get into the house and then have the trustee make me sell the house because I cant afford it.

Right now I am waiting to get the results of his credit report in order to get him to sign and give the deposit and I hope he doesnt change his mind about renting the house.

I need to file tomorrow because I am 2 months behind on the mortgage, I am behind because I havent received any income from that property in 3 months and had to spend money to get it ready to be rented.

I dont want the lender to start foreclosure on me because I am behind and I cant pay the back payments until I get a renter..its a catch 22 here.

What do you think? Should I just wait till I get the lease signed and collect the deposit and immediately pay the back payment or just file as it is with the over $2500 negative.

Now I am really anxious to file because I cant wait to have the lenders stop calling me... now the credit cards are starting to call and Wells Fargo is so rude when they call. I must say they are the worse.

I am thinking of filing first thing in the morning so I can get this over with..have given it a lot of thought, but I am still very afraid and dont want to lose the rentals that I have put so much time and effort. I finally have found good tenants and want to keep them. Life will be much easier without the credit cards and the HELOCS.

Thanks.

[lrprn]

Filing tomorrow and excees in expenses of $2500. Will this be an issue for the Trustee since I intent to keep my rental properties.

I beg of you....if you have put your filing papers together without the help of an experienced bk lawyer, since you have properties, PLEASE, PLEASE go see at least 3-4 experienced bk lawyers who file cases with property assets frequently to help you. Your case is complex and should *NOT* a case that's filed pro se (without a lawyer).

I need to file tomorrow because I am 2 months behind on the mortgage, I am behind because I havent received any income from that property in 3 months and had to spend money to get it ready to be rented.

You do realize that you can't file Ch 7 in arrears on your house and automatically keep it, right?

What do you think? Should I just wait till I get the lease signed and collect the deposit and immediately pay the back payment or just file as it is with the over $2500 negative.

DO NOT file Ch 7 being in arrears on your mortgage if you intend to keep your home!

Now I am really anxious to file because I cant wait to have the lenders stop calling me... now the credit cards are starting to call and Wells Fargo is so rude when they call. I must say they are the worse.

You are allowing the cc calls to push you into making a decision that's likely not in your best interests. They are just phone calls - you're giving them far too much power. If you don't like the calls, put a message on your answering machine that clearly identifies you as you and let the machine pick up. Or answer the call, identify yourself, and then quietly hang up even if they are still talking. There's no rule you have to talk to creditors.

I am thinking of filing first thing in the morning so I can get this over with..have given it a lot of thought, but I am still very afraid and dont want to lose the rentals that I have put so much time and effort. I finally have found good tenants and want to keep them. Life will be much easier without the credit cards and the HELOCS.

This is a time to *PLAN* your bankruptcy carefully. It is *NOT* a time for haste or you could find yourself in very bad places you can't get out of easily - such as losing not only your rental properties but your primary home as well.

First thing to do is set up free initial consultations with a minimum of 3-4 experienced bk lawyers in your area. Lay out everything and see what they think. You owe that to yourself and your tenants to make the most knowledgeable decisions you can. Pushing to file quickly isn't necessarily in yours or their best interests.

You've made the tough decision that filing is likely what you're going to have to do. Now you need to make sure that filing is going to get you where you ultimately want to be with the assets you hope to keep in place.

[HOMEBODY]

Thanks for the warning. I have gone to see 3 BK attys and basically they all say the same thing. I will have no problem filing Chpt 7. I can keep my properties and even modify them once in BK because creditors are much nicer to work with you.

Only problem right now is the future rental income I will have this week once the new tenant signs the lease and I dont know if being negative on the expense by so much is good or not.

I am a paralegal and have prepared a few BK as part of my business so I am comfortable filling out the papers...just dont know the laws very well when it comes to properties that are in the situation I am in.

I cannot afford the $2000 the attorneys are asking for when I can prepare these forms myself.

What I can do is just wait a few days and bring my mortgages semi up to date by paying at least one payment and getting the tenant to sign the lease and make a deposit which will help me get my properties current.

I just hate these creditor's calls and I dont want any of them file suit against me.

[lrprn]

I am a paralegal and have prepared a few BK as part of my business so I am comfortable filling out the papers...just dont know the laws very well when it comes to properties that are in the situation I am in.

I added the emphasis to what you said because this is precisely why you should file using an experienced bk attorney who does know the laws well and can protect your assets and properties when you file.

I cannot afford the $2000 the attorneys are asking for when I can prepare these forms myself.

If you stop paying all your unsecured creditors completely, you can save up $2K to pay a retainer. If you can't save up $2K in 4-5 months, then chances are filing bankruptcy isn't going to help you much after discharge.

I just hate these creditor's calls and I dont want any of them file suit against me.

You aren't going to be sued by the vast majority of unsecured creditors for at least 4-5 months - probably much longer. Only if a creditor is local and/or the debt is personal will an unsecured creditor move to court after a few missed months of payment. If you don't have any of those debts, then it's likely you have time to wait a bit, save the $$s before filing, and pay the retainer.

Trustees see pro se Ch 7 filers with valuable asset properties who don't have legal representation as ripe for the picking, even if you are a paralegal. If the trustee can find a legal way to seize and sell your assets, that's what's going to happen. The payoff is too big to pass up.

Paying a lawyer to help you if the trustee does file objections to your case will cost a lot more than $2K. Why not be proactive for yourself and do your best to prevent any trouble in the first place by having knowledgeable legal help to file?

[HOMEBODY]

Thanks for the warning...I have seen the 3 or 4 attys and have gotten their advice.

My houses are way underwater. My main house is underwater by $200,000, the 2nd is by about $50,000 and the 3rd by about $60,000.00

I will have the tenant sign the lease tomorrow and secure the rent and put it on the income schedule as income.