Comments for California Bankruptcy Blog http://www.socaladvocates.com/blog Chapter 7 and 13 Bankruptcy Information Wed, 18 Apr 2012 18:26:06 +0000 hourly 1 http://wordpress.org/?v=3.1.2 Comment on Foreclosure After Bankruptcy- Do I Have to Pay the Mortgage Company? by ken http://www.socaladvocates.com/blog/foreclosure-after-bankruptcy/#comment-2979 ken Wed, 18 Apr 2012 18:26:06 +0000 http://www.socaladvocates.com/blog/?p=142#comment-2979 Thanks Norma...can you please clarify your statement: "If you do not pay for the home owners insurance then generally your mortgage company may pick up the costs and they can potentially try to charge you . If you file for bankruptcy this of course would be included. In general it is a good idea to have home owners insurance coverage until the home is out of your name." I was given a discharge of my debt. I have not kept up on the home owners insurance. Are you saying the mortgage company could pay that and then charge me?? I have not been able to afford to pay the insurance, (I did file chapter 7 for financial reasons.) Ken Thanks Norma…can you please clarify your statement:
“If you do not pay for the home owners insurance then generally your mortgage company may pick up the costs and they can potentially try to charge you . If you file for bankruptcy this of course would be included. In general it is a good idea to have home owners insurance coverage until the home is out of your name.”

I was given a discharge of my debt. I have not kept up on the home owners insurance. Are you saying the mortgage company could pay that and then charge me??

I have not been able to afford to pay the insurance, (I did file chapter 7 for financial reasons.)

Ken

]]> Comment on Can My Social Secuirty or SSI Be Garnished? by Norma Duenas http://www.socaladvocates.com/blog/social-secuirty-garnished/#comment-2958 Norma Duenas Sun, 15 Apr 2012 18:51:08 +0000 http://www.socaladvocates.com/blog/?p=99#comment-2958 Who is the judgment from? If it is from credit card debt, medical bills or personal loans, then they will not be able to garnish or levy the money from your social security income. Make sure you don't commingle your SSI income with any other income in bank accounts. Creditors rarely seek to levy the judgment against an old vehicle. Although technically a creditor can seek to obtain a writ of execution and seek to levy against the vehicle, in reality this would rarely occur for an old vehicle. In addition if this were to occur there are state exemptions that protect $2,725 of value in a vehicle in California. Even if they attempted to sell the vehicle you could fill out a claim of exemptions. The claim of exemptions would exempt these funds from being applied to the debt. Who is the judgment from? If it is from credit card debt, medical bills or personal loans, then they will not be able to garnish or levy the money from your social security income. Make sure you don’t commingle your SSI income with any other income in bank accounts. Creditors rarely seek to levy the judgment against an old vehicle. Although technically a creditor can seek to obtain a writ of execution and seek to levy against the vehicle, in reality this would rarely occur for an old vehicle. In addition if this were to occur there are state exemptions that protect $2,725 of value in a vehicle in California. Even if they attempted to sell the vehicle you could fill out a claim of exemptions. The claim of exemptions would exempt these funds from being applied to the debt.

]]> Comment on Foreclosure After Bankruptcy- Do I Have to Pay the Mortgage Company? by Norma Duenas http://www.socaladvocates.com/blog/foreclosure-after-bankruptcy/#comment-2957 Norma Duenas Sun, 15 Apr 2012 18:34:35 +0000 http://www.socaladvocates.com/blog/?p=142#comment-2957 Your best option in this situation is to try to do the following: 1) Wait and see what happens when the home forecloses. There is a possibility that the HOA fees will be paid off as part of the foreclosure and that there will be no outstanding liability after the foreclosure. Hold the monthly HOA fees aside to ensure that you have the funds in case they are not paid off and the home owners association decides to seek collection from you. 2) Pay the ongoing fees if you are concerned and do not want to wait an see what happens when the property forecloses. Generally it is best to hold the funds and wait until the foreclosure occurs to determine if the HOA company will hold you liable if the fees are not paid through the foreclosure. Your best option in this situation is to try to do the following:

1) Wait and see what happens when the home forecloses. There is a possibility that the HOA fees will be paid off as part of the foreclosure and that there will be no outstanding liability after the foreclosure. Hold the monthly HOA fees aside to ensure that you have the funds in case they are not paid off and the home owners association decides to seek collection from you.
2) Pay the ongoing fees if you are concerned and do not want to wait an see what happens when the property forecloses.

Generally it is best to hold the funds and wait until the foreclosure occurs to determine if the HOA company will hold you liable if the fees are not paid through the foreclosure.

]]> Comment on Can Bankruptcy Get Rid of Divorce Debt from a Hold Harmless Clause? by Norma Duenas http://www.socaladvocates.com/blog/divorce-decree-debt-in-bankruptcy/#comment-2956 Norma Duenas Sun, 15 Apr 2012 18:26:52 +0000 http://www.socaladvocates.com/blog/?p=43#comment-2956 If you both were to file for bankruptcy then the mortgage company could not go after either one of you regardless of you assigning the debts as part of the divorce. Even if the hold harmless agreement is not discharged the issue really becomes mute because no party is going to seek to enforce this hold harmless clause in court. In the situation where both file for bankruptcy the creditors would not be able to go after either one of you, therefore neither you or your ex spouse would seek to enforce the hold harmless clause or the division of debts in the divorce. If you have a divorce decree that agrees to someone taking over a debt and agreeing the hold the other party harmless the issue becomes mute if you both file for bankruptcy. If you both were to file for bankruptcy then the mortgage company could not go after either one of you regardless of you assigning the debts as part of the divorce. Even if the hold harmless agreement is not discharged the issue really becomes mute because no party is going to seek to enforce this hold harmless clause in court. In the situation where both file for bankruptcy the creditors would not be able to go after either one of you, therefore neither you or your ex spouse would seek to enforce the hold harmless clause or the division of debts in the divorce. If you have a divorce decree that agrees to someone taking over a debt and agreeing the hold the other party harmless the issue becomes mute if you both file for bankruptcy.

]]> Comment on Can My Social Secuirty or SSI Be Garnished? by Norma Duenas http://www.socaladvocates.com/blog/social-secuirty-garnished/#comment-2955 Norma Duenas Sun, 15 Apr 2012 17:46:15 +0000 http://www.socaladvocates.com/blog/?p=99#comment-2955 Regular bill collections such as medical bills cannot touch social security income. Social security income is exempt from garnishment or levy from most creditors. Even with this creditors do make mistakes and sometimes incorrectly levy bank accounts. To avoid any issues you should also ensure that your social security funds are no commingled with other funds. If a creditor levies your social security income then you can file paperwork to have the money returned to you. Regular bill collections such as medical bills cannot touch social security income. Social security income is exempt from garnishment or levy from most creditors. Even with this creditors do make mistakes and sometimes incorrectly levy bank accounts. To avoid any issues you should also ensure that your social security funds are no commingled with other funds. If a creditor levies your social security income then you can file paperwork to have the money returned to you.

]]> Comment on Avoiding A Judgment Lien in Bankruptcy by Norma Duenas http://www.socaladvocates.com/blog/avoiding-a-judgment-lien-in-bankruptcy/#comment-2954 Norma Duenas Sun, 15 Apr 2012 17:36:23 +0000 http://www.socaladvocates.com/blog/?p=301#comment-2954 Here are some options you can try: 1) First contact the trustee in the case to determine if they are willing to have a letter directed to the sheriffs office to release the funds. Some trustee's are willing to do this and if the sheriff abides then the funds will be returned to you. Most of the time they are unwilling to do this if the funds are exempt since they have no interest and will not get anything in for the creditors. 2) Contact the creditor and ask for voluntary return of the funds. Some creditors will voluntarily return the funds because they know that if they have levied over $600 within 90 days of filing, then a preference action may be brought against them. This may result in additional costs to them. 3) If the funds are with sheriff's then you would file a motion to avoid the lien and have the funds returned to you. 4) If the funds are in the hands of the creditor then you should consider filing an preference action if the amount obtained was $600 or more over the 90 days prior to the filing of your bankruptcy case. Here are some options you can try:

1) First contact the trustee in the case to determine if they are willing to have a letter directed to the sheriffs office to release the funds. Some trustee’s are willing to do this and if the sheriff abides then the funds will be returned to you. Most of the time they are unwilling to do this if the funds are exempt since they have no interest and will not get anything in for the creditors.
2) Contact the creditor and ask for voluntary return of the funds. Some creditors will voluntarily return the funds because they know that if they have levied over $600 within 90 days of filing, then a preference action may be brought against them. This may result in additional costs to them.
3) If the funds are with sheriff’s then you would file a motion to avoid the lien and have the funds returned to you.
4) If the funds are in the hands of the creditor then you should consider filing an preference action if the amount obtained was $600 or more over the 90 days prior to the filing of your bankruptcy case.

]]> Comment on Foreclosure After Bankruptcy- Do I Have to Pay the Mortgage Company? by Norma Duenas http://www.socaladvocates.com/blog/foreclosure-after-bankruptcy/#comment-2953 Norma Duenas Sun, 15 Apr 2012 17:21:21 +0000 http://www.socaladvocates.com/blog/?p=142#comment-2953 To protect yourself I would of course make sure that any agreement is in writing. If you are concerned that the lender is not being honest then you can consider filing a Chapter 13 bankruptcy where you would pay back the arrears as part of your Chapter 13 bankruptcy. The Chapter 13 bankruptcy would allow you to repay the arrears on the property over a period of 60 months. You can file the Chapter 13 bankruptcy even though you had a previous Chapter 7 bankruptcy filing. I am assuming you do not have any unsecured debt and that you would only be paying back the arrears as part of the bankruptcy. Filing the Chapter 13 bankruptcy would stop the sale of the home. To protect yourself I would of course make sure that any agreement is in writing. If you are concerned that the lender is not being honest then you can consider filing a Chapter 13 bankruptcy where you would pay back the arrears as part of your Chapter 13 bankruptcy. The Chapter 13 bankruptcy would allow you to repay the arrears on the property over a period of 60 months. You can file the Chapter 13 bankruptcy even though you had a previous Chapter 7 bankruptcy filing. I am assuming you do not have any unsecured debt and that you would only be paying back the arrears as part of the bankruptcy. Filing the Chapter 13 bankruptcy would stop the sale of the home.

]]> Comment on Avoiding A Judgment Lien in Bankruptcy by Norma Duenas http://www.socaladvocates.com/blog/avoiding-a-judgment-lien-in-bankruptcy/#comment-2952 Norma Duenas Sun, 15 Apr 2012 17:17:42 +0000 http://www.socaladvocates.com/blog/?p=301#comment-2952 It is very uncommon for any credit card company to seek to collect personal possessions for credit card debt. I have never seen it yet. Generally used household goods would be worthless to a credit card company, which most of the time they can get almost nothing for. If you have basic household stuff, that is not highly valuable I doubt any credit card company would seek to collect these items. In addition, there are state exemptions also that may prohibit a credit from seizing household items to collect on a judgment. Depending on your state, your households goods and personal items may be exempt from enforcement. It is very uncommon for any credit card company to seek to collect personal possessions for credit card debt. I have never seen it yet. Generally used household goods would be worthless to a credit card company, which most of the time they can get almost nothing for. If you have basic household stuff, that is not highly valuable I doubt any credit card company would seek to collect these items.

In addition, there are state exemptions also that may prohibit a credit from seizing household items to collect on a judgment. Depending on your state, your households goods and personal items may be exempt from enforcement.

]]> Comment on Foreclosure After Bankruptcy- Do I Have to Pay the Mortgage Company? by Norma Duenas http://www.socaladvocates.com/blog/foreclosure-after-bankruptcy/#comment-2951 Norma Duenas Sun, 15 Apr 2012 17:11:34 +0000 http://www.socaladvocates.com/blog/?p=142#comment-2951 If you do not pay for the home owners insurance then generally your mortgage company may pick up the costs and they can potentially try to charge you . If you file for bankruptcy this of course would be included. In general it is a good idea to have home owners insurance coverage until the home is out of your name. You do not want to end up in a situation where you have liability post bankruptcy for an incident on the property. I would recommend that you continue to have coverage on the property until the home is out of your name. If you do not pay for the home owners insurance then generally your mortgage company may pick up the costs and they can potentially try to charge you . If you file for bankruptcy this of course would be included. In general it is a good idea to have home owners insurance coverage until the home is out of your name. You do not want to end up in a situation where you have liability post bankruptcy for an incident on the property. I would recommend that you continue to have coverage on the property until the home is out of your name.

]]> Comment on Foreclosure After Bankruptcy- Do I Have to Pay the Mortgage Company? by Norma Duenas http://www.socaladvocates.com/blog/foreclosure-after-bankruptcy/#comment-2950 Norma Duenas Sun, 15 Apr 2012 17:02:23 +0000 http://www.socaladvocates.com/blog/?p=142#comment-2950 If you are paying for the insurance and the insurance covers the incident that occurs then the bankruptcy should not play any role on being paid the coverage. The bankruptcy should not affect your ability to have coverage for any event that is covered in your home insurance policy. If you are paying for the insurance and the insurance covers the incident that occurs then the bankruptcy should not play any role on being paid the coverage. The bankruptcy should not affect your ability to have coverage for any event that is covered in your home insurance policy.

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