Question

[mlevesque308]

Hi all,

I'm meeting with my attorney tomorrow to see if it's time or not to file. I have a huge question for him, which he said we would discuss tomorrow, but I'm hoping some of the mods here will comment.


I purchased/closed on condo in Oct. 2012, my mortgage is through the developer and it's private. I don't receive any benifit of good payments on my credit report. My developer came to me last week and asked if I would be interested in a "swap", I guess he has an interested party in the project and my "current" unit is ideal for them. He should me another unit that he would move me into. It's amazing, better suited for my lifestyle. Since he hold the note, he said it would simply be a swap. Just take all of the origional information on my closing docs and create a new set of documents with new unit number. I'm not gaining any money, equity or anything like that. It's simply a swap, i guess his way of selling two units.

What are my options if any? what are the potential ramifications? i told him I would have to talk to my attorney, he said ok. I think he would be willing to work with me, as these folks are looking to move until Dec/Jan.

Thoughs?

[tobee43]

although i'm not a mod, i will give you my thoughts anyway you don't have to read the post lol!

the trade is even, i don't even see why you would need to mention at all, unless you must list a change of address and again you haven't filed yet. there is no money exchange, and while i'm certain you will listing your mortgage payment and taxes, ins., ect., on your means test and sch j and there are no momentary changes therefore it should be status quo.

you haven't filed yet, so i really don't understand what your exact concern is again there is no money being exchanged here, unless of course you plan on including your mortgage and leaving you home, which it certainly does not sound like. it may be different if you were in a 13, but even then, it would just be to get permission from the trustee for the move.

looking at your time table if you file this month you'd wait most likely 4-6 weeks (ours was 8 weeks from filing date), for your 341...60 days after that then another 90 days for good measure, you'd be making your move around your discharge time, if all went smooth.

frankly, i don't even understand why you would even mention it.

[mlevesque308]

Thanks Tobee43, I guess I'm just nervous. IF the CH7 doesn't go through.........what happens then. I guess I've been overly honest. Like the fact that My mom gave me $600 for a gift and I returned it (3-months ago) I made sure my attorney was aware of that. I just don't want anything coming back to haunt me.

i can't tell you how greatful I am for you folks being here. You've really cut my stress level tremendously!

[LadyInTheRed]

If the transaction occurs before you file BK, you will need to disclose it in your statement of financial affairs since you will be transferring property in your name to somebody else. But, it shouldn't be a problem if the units are the same value. It is possible the trustee will ask you questions about it and ask for documentation. But, that's no reason to not make the exchange.

If your BK is dishcarge before the transaction it's not a problem at al.

FYI, most of the moderators are like a lot of other forum members. We found bkforum while somewhere in the BK process, saw value in the site and stuck around to share what we've learned with others. When there was a need for moderators, we were asked to volunteer. Don't assume we are more knowledgeable than other members just because we are moderators. Otherwise, you may discount the advice of a member who has more experience or knowledge that is relevant to your question. That person might even be one of the bk attorneys who take their time to help people here.

[AngelinaCat]

I can second what Lady said about moderators. I read this post yesterday, but while I have some knowledge about Florida Homestead Exemption and property laws and such, I have very little knowledge or first-hand experience with anything other than a very simple mortgage. Therefore, I didn't feel qualified to opine here, and did not.

Your best bet might be to wait for Des, MsBklawyer, or the Michigan BK attorney who frequents now and again.

Again, as Lady said, other posters might have more actual real estate experience than any of the attorneys.

Good wishes to you.

[mlevesque308]

I think the transaction may occur prior to discharge. Would that be an issue? I'm doing my best to avoid that.

I want to clear something up, I just Mods as abroad statement, I just assumed everyone was one. I don't know how this site works or the ins and outs.

Please please do not be offended by that term. I value you everyone's input and value the time spent answering these posts.

[AngelinaCat]

No, we are not offended; we were just concerned that you might have the wrong impression.

As to the question, based on what Lady said, if the transaction happens AFTER you file, but before you are discharged, there probably would not be an issue.

Now if it happens after you file, but BEFORE the 341, you may have a problem. One of the questions that the trustee typically asks is "has anything changed between the time you filed, and now?" Since you are under oath to tell the truth, you would have to disclose the swap. If the swap is equal value for equal value, this *should* not be a problem.

But this is something you and your attorney have to discuss thoroughly. A lot is dependent on how your particular district works, and the temperament of each trustee. Some are more 'picky' than others. I have read in another thread of an attorney delaying the filing for a particular debtor, until a trustee more favorable to that debtor's situation came around in the rotation.

Keep in mind also, that the attorney you are going to meet may have no real estate law knowledge, and may not know how to address this question. The attorney's overall experience is also a factor to consider.

Good luck.

[mlevesque308]

Thank you both so much.

[LadyInTheRed]

If the transaction happens after you file and before your case is closed, you will probably have to wait until after the deadline to object to your exemptions and/or until after the trustee abandons your home as an asset of the estate, before you can make the exchange. Your attorney can best advise you on this.

I want to clear something up, I just Mods as abroad statement, I just assumed everyone was one. I don't know how this site works or the ins and outs.

FYI, Moderators are forum members with access that allows us to deal with spammers and trolls. We have the power to ban members who are obviously here to advertise their services or, in rare cases, members who refuse to follow forum rules. We also remind people of forum rules when appropriate. There are only a few moderators and the word "moderator" appears under our usernames in our posts, where other members are designated as "registered user". There is also a "Super Moderator" (HRx) and an "Administrator" (Laz who is the creator of the site). Other than posts where we are obviously acting as moderators (like in my post asking you not to repeat the same question in a 2nd thread) our participation in the forum is the same as everybody else's. People often assume that Moderators are more qualified to answer questions than other members. I think it is important for people to understand that that is not necessarily the case.

[mlevesque308]

LITR,

Thanks you so much. That makes perfect sense.

Thanks for the clarification on how it works around here.

The site is great and the effort of those here is priceless. Thanks all for taking the time to help me out. I'll let you know how it goes tomorrow.

[tobee43]

i'm certainly not offended and sorry it i emphasized the value of the word. our mods are experience and excellent people who dedicate their time and effort to help run the sit. they are rarely thanked and many times not appreciated!

so cheers for our mods:

getting back to your situation, i'm thinking about the title transfer you would have to list on your petition. most likely the question of any title exchanges you have made within the past 2 years is likely to come up. after giving this some thought, if you are in rhoade island i'm not certain how the petition reads , while there may be no money exchange the title transfer could be questionable by the trustee. so it's best to lay it right there on the table for the even exchange. the more i thought about it, you don't want to be put in a position where you are asked by a transfer took place during this time period.

yes, i'd like to know the outcome tomorrow from your atty! i'm sure you will have a better idea of how this situation, an unusual one at that, should or will be handled. best of luck to you! sounds like a GREAT deal!