18 months after ch 7 discharge, and still no forclosure on house!!

[lichteda]

Well according to Buffett today... "Banks Victimized by Evicted Homeowners"

http://www.bloomberg.com/news/2012-02-27/buffett-says-banks-victimized-by-evicted-homeowners-who-emerged-as-winners.html

[angles]

Ya, we are the ones who victimized the banks. More ridiculous political twisting. He is a big Obama fan as well, if that puts it into context.

[NewStart2012]

"Filed 7 - 7/8/10, 341 - 8/17/10 - Continued, Presumption of Abuse Filed - 8/27/10
Report of No Distribution 9/27/10
Awaiting Discharge 10/19/10, Discharged 2/7/11 Closed 02/25/11"

Hi Screentest...not sure if you're still on here; but just curious, what does/did it mean "continued, presumption of abuse filed"? What did you have to go through to eventually get your "report of no distribution" and eventually your "discharge"? Thank you!

[screentest]

"Filed 7 - 7/8/10, 341 - 8/17/10 - Continued, Presumption of Abuse Filed - 8/27/10
Report of No Distribution 9/27/10
Awaiting Discharge 10/19/10, Discharged 2/7/11 Closed 02/25/11"

Hi Screentest...not sure if you're still on here; but just curious, what does/did it mean "continued, presumption of abuse filed"? What did you have to go through to eventually get your "report of no distribution" and eventually your "discharge"? Thank you!

Hi Newstart,

Our 341 was continued because the trustee did not feel we provided enough information he needed. He made some new requests like additional bank statements, an explanation of how we accounted for our tax return etc. This added stress to the process of course and we had to go through another 341 because of it.

The "presumption of abuse" was filed because we were far and above the median income for our area and the US Trustee wanted to take a closer look at our petition. Once we satisfied the regular trustee, our report of no distribution was posted and then we sat in limbo while the US trustee worked through their issues.

Our case was held up a long time, almost 3 months longer than the 60 day wait. The US trustee office lost our file and replaced the attorney assigned to our case (fired) during our process. This held up our case. We should have been discharged in October of 2010; however did not receive our final discharge until February 2011. Very stressful time; however well worth it. Still debt free and living a cash lifestyle, its great!

Good Luck!

ST

[NewStart2012]

Thank you for the response ST Hope it wasn't too nosey of me to ask. I just want to know all the different situation that may arise as we plan for this. What do you mean "they wanted an explanation on how you accounted for your taxes"? Did you have to explain specific situations (i.e. income, write offs, etc)? Is it best for us to have things things readily explained "just in case"

Thanks again! Glad all went well in the end for you

[screentest]

Thank you for the response ST Hope it wasn't too nosey of me to ask. I just want to know all the different situation that may arise as we plan for this. What do you mean "they wanted an explanation on how you accounted for your taxes"? Did you have to explain specific situations (i.e. income, write offs, etc)? Is it best for us to have things things readily explained "just in case"

Thanks again! Glad all went well in the end for you

No, not at all. There are many tricks and landmines to be avoided as you go down the BK road. Four months before we filed, we received a tax return check and the trustee wanted to know what we did with the money, even though it fit within our allowable exemptions. The trustees job is to find any cash and/or assets you may have he can seize and sell to give the money to your creditors. We put most of it into a ROTH IRA (completely allowable) to exempt the cash and used the rest of the exemption for other misc stuff.

If you haven't filed yet there are definitely do's and dont's before filing you will want to read up on. This site is great for that information as should be your attorney. Get all the information you can and ask al the questions you can think of before you file. It will help the process go very smooth.

Good Luck

ST

[NewStart2012]

Thank you again ST! Yes, we haven't filed yet. We will be within the next month or so though. I'm just worried and want to avoid any "mistakes". We are expecting a "nice" tax refund and that's why I was curious. Our attorney says we can exempt it and we should be ok. Didn't realize we could put money in our Roth IRA's. We haven't contributed to ours in a very long time due to our financial setbacks. Will have to ask our atty about that. Thank you for that tidbit. I wouldn't of known to ask otherwise.
Do you by chance know what happens if you have cash withdrawals without receipt re: where the $ was spent? We buy things secondhand mostly and often have to pay cash for them without getting receipts. Would we need to print out the email communications to show proof? How proactive should we be?

Thanks again!

[screentest]

Thank you again ST! Yes, we haven't filed yet. We will be within the next month or so though. I'm just worried and want to avoid any "mistakes". We are expecting a "nice" tax refund and that's why I was curious. Our attorney says we can exempt it and we should be ok. Didn't realize we could put money in our Roth IRA's. We haven't contributed to ours in a very long time due to our financial setbacks. Will have to ask our atty about that. Thank you for that tidbit. I wouldn't of known to ask otherwise.
Do you by chance know what happens if you have cash withdrawals without receipt re: where the $ was spent? We buy things secondhand mostly and often have to pay cash for them without getting receipts. Would we need to print out the email communications to show proof? How proactive should we be?

Thanks again!

Large cash withdrawals would be what the trustee is looking for, not small, regular withdrawals for everyday stuff. If you are moving thousands of dollars around and keeping the cash in a mattress etc, that would trigger a red flag. Remember you are considered BK 90 days before you actually file so this is the period you need to be most cautious about in regards to your banking habits. Make sure your attorney uses all your allowable exemptions and accounts for everything you have to exempt in the schedules.

ST

[NewStart2012]

Thank you so much! Good info Yes, I was worried about one large withdrawal from our business acct that we put directly into our personal account to pay bills. I have the receipt of the withdrawal and deposit. You think that will be ok or should we wait 90 days pass that time?

Thanks again ST!

[screentest]

Yes, I would just keep good accounting of what and how any money is spent. A trustee has the ability to void or reverse any payments to creditors or family etc during your BK case and prior if it looks suspicious. Paying regular bills is the normal way of doing business; however, if you pay off a creditor or a family member this will spark trouble. Just be prepared for a 90 day look-back of activities from the month you file.

We planned ahead and took 4 months to prepare everything in our case before we filed. We were over the median so we needed some time for our income to fall within the guidelines of chapter 7 before we could file. When we were sure we were good, the trustee decided to take an additional month of income and do a 7 month look-back calculation of income instead of 6 months. This changed all the number on our means test and set in motion the presumption of abuse and the anticipated fight for our chapter 7. Luckily, deadlines came before the US trustee was able to act in our case and we made it through. Not without a lot of stress and sleepless nights however.

ST

[Cennian]

i think you're almost there to be right

[NewStart2012]

Wow! Good thing for you ST! Thanks again. We'll keep good records. We haven't used any cc's in over a year and haven't paid anyone; so hopefully we're on the right track.

[basketsbears]

Hi Newstart,

Our 341 was continued because the trustee did not feel we provided enough information he needed. He made some new requests like additional bank statements, an explanation of how we accounted for our tax return etc. This added stress to the process of course and we had to go through another 341 because of it.

The "presumption of abuse" was filed because we were far and above the median income for our area and the US Trustee wanted to take a closer look at our petition. Once we satisfied the regular trustee, our report of no distribution was posted and then we sat in limbo while the US trustee worked through their issues.

Our case was held up a long time, almost 3 months longer than the 60 day wait. The US trustee office lost our file and replaced the attorney assigned to our case (fired) during our process. This held up our case. We should have been discharged in October of 2010; however did not receive our final discharge until February 2011. Very stressful time; however well worth it. Still debt free and living a cash lifestyle, its great!

Good Luck!

ST

Hi ST,

We just filed the end of June. Our attorney filed and since our look back was over the median, and our income changed, she had my husband sign an affidavit that the income was not a true reflection. She did mark the "presumption of abuse" box on our filing. She didn't seem concerned, felt either at 341, or a phone call she will have with trustee should do it. However, the more I think about it the more nervous I get!!!

Our income/expenses were about $300 short I believe so hopefully that will do it too. Waiting on pins and needles until our 341 in August.

[booboo]

Hi All,

Just curious if anyone else ahs experienced this. We filed Ch 7 back in March of 2009, was discharged successfully in July 2009. Since then, our house (which was discharged in the BK, no reaffirm), has just been sitting empty. The mortgage company (BofA, was Countrywide), sends us regular monthly "informational statements" showing the balance and current past due amounts, but no attempt to foreclose or even send notice of default. Liiterally, nothing has happened since the discharge 18 months ago!!

Unfortunately, we moved into a rental right after the BK to avoid the uncertainty of when the foreclosure would happen after the BK. Now it looks likewe could have save 10's of thousands by staying in the house!!

I'm not willing to move back in now, because they will no doubt start the process right after we move back in!

Has anyone ever heard of it taking this long to foreclose after BK is discharged? We're in CA, and I know that slows it down a bit, but 18 months and still no sign of anything?

What gives?!!

It tooks Wells Fargo Bank in California (where property is located) 3 years to foreclose after BK.

BooBoo