Re: Helping a friend in Nebraska

Posted by Janie on November 29, 2004 at 09:07:03:

In Reply to: Re: Helping a friend in Nebraska posted by Janie on November 28, 2004 at 20:55:21:

: Your statements about your friend are disturbing. If she is suffering from diminished capacity, how was she able to purchase a home let alone secure a loan against the property?

: As for the bankruptcy. Yes she can file again because it has been more than 10 years.

:
: Here is some insight to bankruptcy in relation to foreclosure that I posted a while back. Read it thoroughly because it will help you with a decision.

:
: Considering Bankruptcy to stop Foreclosure:

:
: Bankruptcy can be a good solution to wipe the slate clean and start over, but should only be considered as a last result because there are after affects of going through the bankruptcy system.

: First, if your goal is to stop a foreclosure so you can get back on your feet, then you need to know which bankruptcy will help you.

: Chapter 7 bankruptcy erases all unsecured debts. It is known as a "Discharge.' Those are debts that are not liened to your home or car. You then continue to pay on your secured debts, i.e. home, car, etc. The goal of a BK 7 is to lower your debt to income ratio, so you are not struggling.

:
: Chapter 13 bankruptcy is a completely different ball game. It is a repayment plan. There is no discharge. One reason for going into a BK 13 is to keep your home when you are in foreclosure, or, so far behind in payments, and you can't get caught up. BK 13 also has a provision for reducing unsecured debts. The repayment plan last three to five years. It puts all arrearages into the plan, and then you begin paying payments to your lender, while also making payments to the trustee in the plan. The trustee takes the payments you make to him/her and doles it out to pay off your debts.

: Before deciding on a BK, get legal advice about which option will work for you. Sit down and crunch some numbers. Determine a plan for pulling out of the hole you dug yourself into. Then go talk to a BK attorney.

:
: Recommendations:

:
: 1. Never take the advice of the first attorney you speak to, or, even the second one. Consult with at least five attorneys. No two attorneys think a like. They'll each have different experiences to bring to the table. Keep your ears open to learn. Never tell any of them that you have seen a different one. (they resent it). Take a note pad and keep notes. Also take a list of questions you need answers to. Remember these two important things:

: a) BK attorneys are a dime a dozen; and

: b) Most BK attorneys are paper preparers. They use a form, put your info on, file it, notify your creditors to stay away, and sit with you at the creditor's meeting while you do all the talking.

: So, shop for an attorney with actual BK litigating experience. You never know. If your lender decides to file a motion for relief from stay, you'll need a litigator to fight it.

: Financing: A BK 7 is money upfront, no exceptions. A BK 13 attorney is the filing fee and his costs are added to the plan.

:
: With assets of your size, you should consult with at least five (5) attorneys. Here's some pointers:

:
: What to expect while in BK

:
: 1. Most credit card companies will do a setoff, which is to wipe it from their books. Some bigger companies, such as Sears or Macy's, have full time attorneys/negotiators, who appear at your 341 meeting to negotiate a settlement. I know of one family that negotiated a deal on their appliances for 5 cents on the dollar, so they could keep the items. What happens then is in the BK papers it's noted as assets you'll retain. Be sure to get it in writing.

:
: 2. As long as you have not done an unlawful act, you will be able to discharge the debts. Rarely do creditors bother to appear at the meetings or challenge you. Only your lender will be dogging you.

:
: Life after a bankruptcy is not a pleasant one.

: a) Insurance companies use bad credit reports to increase your auto, home, medical, and life, rates or even deny coverage;

: b) All your utility providers, including the telephone, are legally entitled to demand a $150 deposit due immediatel you want to sell assets and liquidate as much as possible to avoid bankruptcy.

:
: Good fortune to you,

: Janie

:
: : A group of us have a friend who took out a home equity loan in December of 2003 for about $23,000. This was for some repairs to her home and a consolidation of her credit cards bills. Her job was eliminated in February of 2004; she received severance pay for a short time, then unemployment. Her unemployment ran out in October and she has virtually NO money other about $175 per month in retirement benefits from a former emloyer. Foreclosure proceedings will start unless a payment of $380 is received by Tuesday. Her home is assessed at around $60,000, and it is very outdated. Our friend is 55 years old, single, and has very little skills. Even though she has applied at numerous companies, she only received one interview during all this time. In trying to be kind in evaluting her, we would probably agree that she is somewhat "inept" both physically and mentally and it may be unlikely that she will find unemployment.

: : Does anyone have any recommendations on how her friends can make the best decision to help her? We were told that making a payment by Tuesday would buy her some time, but it may be difficult to sell her home time at this time of the year. She declared bankruptcy in 1992, and we don't know if that can be done again. If it can, would that be a good choice and what would it solve? We are planning to contact some assistance agencies in Omaha, but we don't even know the best recources.

: : Any advice would be appreciated. Thank you

Follow Ups:

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Comments:
: : Your statements about your friend are disturbing.  If she is suffering from diminished capacity, how was she able to purchase a home let alone secure a loan against the property?

: : As for the bankruptcy. Yes she can file again because it has been more than 10 years. 

: : 
: : Here is some insight to bankruptcy in relation to foreclosure that I posted a while back.  Read it thoroughly because it will help you with a decision.

: : 
: : Considering Bankruptcy to stop Foreclosure:

: : 
: : Bankruptcy can be a good solution to wipe the slate clean and start over, but should only be considered as a last result because there are after affects of going through the bankruptcy system.

: : First, if your goal is to stop a foreclosure so you can get back on your feet, then you need to know which bankruptcy will help you.

: : Chapter 7 bankruptcy erases all unsecured debts. It is known as a "Discharge.' Those are debts that are not liened to your home or car. You then continue to pay on your secured debts, i.e. home, car, etc. The goal of a BK 7 is to lower your debt to income ratio, so you are not struggling.

: : 
: : Chapter 13 bankruptcy is a completely different ball game. It is a repayment plan. There is no discharge. One reason for going into a BK 13 is to keep your home when you are in foreclosure, or, so far behind in payments, and you can't get caught up. BK 13 also has a provision for reducing unsecured debts. The repayment plan last three to five years. It puts all arrearages into the plan, and then you begin paying payments to your lender, while also making payments to the trustee in the plan. The trustee takes the payments you make to him/her and doles it out to pay off your debts.

: : Before deciding on a BK, get legal advice about which option will work for you. Sit down and crunch some numbers. Determine a plan for pulling out of the hole you dug yourself into. Then go talk to a BK attorney.

: : 
: : Recommendations:

: : 
: : 1. Never take the advice of the first attorney you speak to, or, even the second one. Consult with at least five attorneys. No two attorneys think a like. They'll each have different experiences to bring to the table. Keep your ears open to learn. Never tell any of them that you have seen a different one. (they resent it). Take a note pad and keep notes. Also take a list of questions you need answers to. Remember these two important things:

: : a) BK attorneys are a dime a dozen; and

: : b) Most BK attorneys are paper preparers. They use a form, put your info on, file it, notify your creditors to stay away, and sit with you at the creditor's meeting while you do all the talking.

: : So, shop for an attorney with actual BK litigating experience. You never know. If your lender decides to file a motion for relief from stay, you'll need a litigator to fight it.

: : Financing: A BK 7 is money upfront, no exceptions. A BK 13 attorney is the filing fee and his costs are added to the plan.

: : 
: : With assets of your size, you should consult with at least five (5) attorneys. Here's some pointers:

: : 
: : What to expect while in BK

: : 
: : 1. Most credit card companies will do a setoff, which is to wipe it from their books. Some bigger companies, such as Sears or Macy's, have full time attorneys/negotiators, who appear at your 341 meeting to negotiate a settlement. I know of one family that negotiated a deal on their appliances for 5 cents on the dollar, so they could keep the items. What happens then is in the BK papers it's noted as assets you'll retain. Be sure to get it in writing.

: : 
: : 2. As long as you have not done an unlawful act, you will be able to discharge the debts. Rarely do creditors bother to appear at the meetings or challenge you. Only your lender will be dogging you.

: : 
: : Life after a bankruptcy is not a pleasant one.

: : a) Insurance companies use bad credit reports to increase your auto, home, medical, and life, rates or even deny coverage;

: : b) All your utility providers, including the telephone, are legally entitled to demand a $150 deposit due immediately, or they can disconnect service;

: : c) Most employers use companies that do background checks by running your credit report as a determination of how stable and responsible you are. People have been denied jobs and careers derailed from bad credit reports. Check 60 minutes archives about how bad the situation is out there;

: : d) You can obtain credit again, but at a much higher rate of interest. Same applies with buying a home; and

: : e) Lenders want you to have at least 18 months between the filing of the BK and you seeking a home loan or refinance.

: : 
: : Shop for good litigating bankruptcy attorney. They typically do not charge more than regular BK attorneys. Definitely make sure they have corporate experience.

: : If you cannot afford a BK attorney, buy Nolo Press' book on BK and it will walk you through it and provide the forms. Also check your local phone book for BK petition preparers.

: : 
: : You and your spouse, or family, should sit down and make a list of what your goal is and what is the bottom line of loss that you are willing to incur. That, more than anything, is the deciding factor for what type of BK to file, or even if you should file a BK.

: : Ideally, you want to sell assets and liquidate as much as possible to avoid bankruptcy.

: 
: : 
: : Good fortune to you,

: : Janie



: : 
: : : A group of us have a friend who took out a home equity loan in December of 2003 for about $23,000.  This was for some repairs to her home and a consolidation of her credit cards bills.  Her job was eliminated in February of 2004; she received severance pay for a short time, then unemployment.  Her unemployment ran out in October and she has virtually NO money other about $175 per month in retirement benefits from a former emloyer. Foreclosure proceedings will start unless a payment of $380 is received by Tuesday.  Her home is assessed at around $60,000, and it is very outdated.  Our friend is 55 years old, single, and has very little skills.  Even though she has applied at numerous companies, she only received one interview during all this time.  In trying to be kind in evaluting her, we would probably agree that she is somewhat "inept" both physically and mentally and it may be unlikely that she will find unemployment.

: : : Does anyone have any recommendations on how her friends can make the best decision to help her? We were told that making a payment by Tuesday would buy her some time, but it may be difficult to sell her home time at this time of the year.  She declared bankruptcy in 1992, and we don't know if that can be done again.  If it can, would that be a good choice and what would it solve? We are planning to contact some assistance agencies in Omaha, but we don't even know the best recources.

: : : Any advice would be appreciated.  Thank you


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