Ask a Bankruptcy Lawyer July 2006

If you have a general question about bankruptcy, you can submit them

If you have a general question about filing bankruptcy, you can submit your questions here. 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.

If you are outside of California and need an attorney, click here to find an attorney. 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.

Saving the House if a Chapter 13 is Dropped?

Q: "We have already claimed chapter 13 (we couldn't do chapter seven under the new laws) but have found we can't afford the payments on top of our house payments and other bills. The mortgage company is going to court to get our case dropped. We're wondering if it is possible to sell a house prior to losing it to the mortgage company. We'd really like to keep the house, but aren't sure if we can if the chapter 13 case is indeed dropped. We'd at least like to see if we can get some of the equity left out of the house - if we can't keep the house, will we have the option to sell before any repossession?"

Signed: Holding out hope, Illinois


A: A lot of this depends on the provisions in your confirmed Plan and the rules of your local court, but you can sell your house if you first obtain court approval to do so. I have no idea what Illinois' laws are regarding foreclosure, but depending on how long your house creditor(s) have left to complete the foreclosure sale after the bankruptcy is over (or after they obtain relief from the automatic stay from the bankruptcy court) you may still have sufficient time to complete a sale then as well. If you are able to get bankruptcy court permission to sell the property and are able to get the court not to grant relief from stay to the creditor(s), then you would likely have to pay the proceeds of sale to the Trustee in your case to be paid to your unsecured creditors (assuming that you aren't already paying 100% to them). You really need to discuss this with an attorney in your area.



Will Bankruptcy Make the Calls from Debt Collectors Stop?

Q: "We have bill collectors calling us non stop and we are doing our best to avoid bankruptcy. We've worked out a debt repayment plan ourselves and for the last two months it has been going well. However, the amount we're sending to some of the bill collectors is not "sufficient" in their eyes and they continue to call, sometimes up to three times a day (from the same company). The calls alone may be enough to push us to bankruptcy, even though we think with dedication and a few lean years we can get out of financial trouble. Do we have any way to get the bill collectors off our back so heavily, or is bankruptcy the only way to get the calls (which also occur at our workplaces) to stop?"

Signed: Screening our calls, California


A: This is not really a bankruptcy question, but a question under the Fair Debt Collection Practices Act (FDCPA) an entirely separate area of law. Nonetheless, my understanding is that if you send a notice to the creditor in writing (or sometimes telling them over the phone works, but it's better to have it in writing) giving them one contact source (such as a PO BOX address) that they can write to, or one number they can call only (such as one that only goes to voice mail), they must honor that. Of course, the letter should explain that you either intend to pay, or you don't intend to pay the debts involved. Again, this is not my area or expertise and you may want to consult with an attorney who specializes in that area.

Ask a Lawyer Archives:

+   Is your median income the only factor in deciding if chapter seven is allowed?
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+   Do I list original debtors, collection agencies or both on my bankruptcy filing?
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+   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