Comments on: What should they do? http://www.bankruptcy-help-resources.com/what-should-they-do/ Quick Answers to Bankruptcy Questions & Understand How Bankruptcy Laws Affect You Thu, 03 Dec 2009 17:06:21 +0000 hourly 1 http://wordpress.org/?v=3.1 By: lantmana http://www.bankruptcy-help-resources.com/what-should-they-do/#comment-2423 lantmana Fri, 01 Aug 2008 18:44:47 +0000 http://www.bankruptcy-help-resources.com/what-should-they-do/#comment-2423 First off with the new bankruptcy laws it will be harder to file. See if this makes sense with this example, Say they owe 200,000 left on the house at the time of forclosure. Through the forclosure process the bank/lender sells the house for 150,000. Now there is 50,000 left of back payment/shortage that your brother and sister inlaw are liable for. Basic court proceedings will just set up a garnishment of their wages untill the settled balance is paid off. (settled balance being what is finally agreed on through the courts). The lender will try to get as much money back as possible, your brother and sister in law's credit and personal finance's will be gone through with a fine tooth comb. If they are putting any money away in a 401k or IRA, more than likely the courts will rule that they will have to stop that and use that money to payback the lender. ( I dont believe they can go after money that is already in a 401k or IRA but they might want to check with a lawyer for that). Would be best for them to get a lawyer that deals with forclosures just to make sure they dont get screwed over by the lender, but they will have to pay the lender back regardless. Good luck First off with the new bankruptcy laws it will be harder to file. See if this makes sense with this example, Say they owe 200,000 left on the house at the time of forclosure. Through the forclosure process the bank/lender sells the house for 150,000. Now there is 50,000 left of back payment/shortage that your brother and sister inlaw are liable for. Basic court proceedings will just set up a garnishment of their wages untill the settled balance is paid off. (settled balance being what is finally agreed on through the courts). The lender will try to get as much money back as possible, your brother and sister in law’s credit and personal finance’s will be gone through with a fine tooth comb. If they are putting any money away in a 401k or IRA, more than likely the courts will rule that they will have to stop that and use that money to payback the lender. ( I dont believe they can go after money that is already in a 401k or IRA but they might want to check with a lawyer for that).

Would be best for them to get a lawyer that deals with forclosures just to make sure they dont get screwed over by the lender, but they will have to pay the lender back regardless.

Good luck

]]> By: WJ http://www.bankruptcy-help-resources.com/what-should-they-do/#comment-2422 WJ Thu, 31 Jul 2008 17:44:25 +0000 http://www.bankruptcy-help-resources.com/what-should-they-do/#comment-2422 If they go to court and a judgement is issued against them they may not be able to claim it in a bankruptcy. Some court judgements are not dismissed by bankruptcy but a lawyer could tell you for sure if it would be able to be claimed. Perhaps they could contact the loan company and explain their financial situation and make a payment arrangement that is low until your brother returns to work and they get on their feet. If they go to court and a judgement is issued against them they may not be able to claim it in a bankruptcy. Some court judgements are not dismissed by bankruptcy but a lawyer could tell you for sure if it would be able to be claimed. Perhaps they could contact the loan company and explain their financial situation and make a payment arrangement that is low until your brother returns to work and they get on their feet.

]]> By: Dr. Deth http://www.bankruptcy-help-resources.com/what-should-they-do/#comment-2421 Dr. Deth Wed, 30 Jul 2008 12:14:56 +0000 http://www.bankruptcy-help-resources.com/what-should-they-do/#comment-2421 if they lost the house and are physically out it and the mortagge company is suing them, it may be best to file for bankruptcy. That will cost possibly close to $1000 for lawyer and filing fees that you would have to pay up front , but should make the loan company go away if they lost the house and are physically out it and the mortagge company is suing them, it may be best to file for bankruptcy. That will cost possibly close to $1000 for lawyer and filing fees that you would have to pay up front , but should make the loan company go away

]]>