Ask a Bankruptcy Lawyer February 2007

If you have a general question about filing for bankruptcy, you can submit your questions here through our online form. Please note that all questions received are answered by a real bankruptcy attorney, however, the answers given are only meant to be general in nature and are not meant to replace legal advice in any way.

If you are outside of California and need an attorney, click here to find an attorney who deals with bankruptcy in your area. Again, none of the information found on this site is meant to replace the advice you can obtain through a qualified legal professional, in your own state (as certain things differ by state in bankruptcy), who has taken the time to look at the specifics of your case before answering your questions.

Should I List Collection Agencies or Original Debtors in My Bankruptcy Claim?

Q: "If an agency says they purchased my debt from the original creditor, then who do I list on the bankruptcy as the creditor to whom I owe the debt?"

Signed: Overextended, Oregon


A: I would list the most current collection agency, and I usually add the original creditor to the mailing matrix just for notice purposes.



How to Handle Investment Properties in Bankruptcy?

Q: "We purchased two rental properties in Florida, which was a big mistake. With the rise in home owners insurance & taxes (5 times higher than California) we are in the red each month, depleating our savings in hopes that the housing market picks up so we can sell and just get out. But, if we forclose on those homes, can the bank take our assets in California (i.e. primary residence, cars)? What other alternative should we seek?"

Signed: Preparing for the worst, California


A: First of all, you wouldn't foreclose on your homes, the bank would. Secondly, whether the banks would have any deficiency claim against you after foreclosure depends on Florida's laws in that regard, and I have no idea what Florida's laws are. However, if there is a deficiency and they get a judgment for that, then yes they can seek to collect against whatever assets you have, subject to any exemptions you have. In California, if you're married, you have a $75,000 homestead exemption. Without a lot more relevant information, that's the best answer I can give.

Ask a Lawyer Archives:

+   Is your median income the only factor in deciding if chapter seven is allowed?
+   Can the IRS come after back taxes of a discharged debt years later?
+   Do I list original debtors, collection agencies or both on my bankruptcy filing?
+   Is bankruptcy an alternative to home buying investments gone bad?
+   How is income determined when deciding if you are eligible for bankruptcy?
+   Can filing bankruptcy wipe away student loan debts?
+   Two houses and backed up credit card payments; Is bankruptcy best?
+   What counts as legitimate living expenses when filing bankruptcy?
+   Questions about using a bankruptcy lawyer vs. filing Pro Se
+   Is a back child support payment considered income when filing bankruptcy?
+   Will claiming bankruptcy affect the co-signer on my car?
+   Does one spouse filing bankruptcy affect the couple's joint tax return?
+   I can't pay an accident judgement, can bankruptcy get rid of it?
+   How are joint marital assets affected by a wife's bankruptcy filing?
+   Do I have to claim my 401K withdrawl as income?
+   Can I sign over a car to my daughter prior to filing?
+   Chapter 13 in danger of being dropped but would like to save the house
+   Debt collector calls may force us into bankruptcy
+   Husband claiming bankruptcy, but the wife has good credit
+   Need tips to find a credit counseling agency