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If you have never been late on mortgage payments and file bankruptcy can the trustee make you sell your house to have more income to pay creditors?
Wiki User
∙ 18y ago
If you have a lot of equity they can take your house, but if your loan is about what the house is worth then they don't want it..... They want to be able to sell somthing to pay the creditors.... It is very rare for a home to be seized and sold in bankruptcy; generally it is done voluntarily by the debtor/filer because they cannot manage the mortgage payments or a reaffirmation agreement is not possible. The state homestead exemption is what protects a home from a forced sale in bankruptcy or in a creditor lawsuit.
Wiki User
∙ 18y ago
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Will the bankruptcy trustee take all of your tax return refund?
I think it depends on when the bankruptcy is discharged, but it would be discussed at your meeting with the creditors and the trustee. If it wasn't discussed, then the refund is yours.
Can you refinance in chapter 13?
Yes. If you have had 12 months of on time payments to the truste and your mortgage has been paid on time,While participating in a Chapter 13 bankruptcy, no major financial transactions are allowed w/o the permisson of the bankruptcy trustee.
If you are in Chater 13 and behind on two mortgage payments and now the mortgage company filed papers in bankruptcy court is it too late to pay?
Not necessarily. You need to contact the trustee of your chapt.13 and the mortgage lender. Foreclosures almost always end up as a loss to the lender. If you can make up the back payments and convince the lender that you can continue to make payments on time, they will probably be cooperative. However, the trustee also has a say in the issue, and can opt to have the 13 dismissed. Stay positive, and good luck!
Would you be asked to put a mortgage on your house to pay your bills if you file for chapter 7 bankruptcy?
No. But if you have equity in your home it may not be the best approach. A chapter 13 is designed for a situation where the person has equity or is behind on payments. In a Chapter 7 - You will be asked to pay the Trustee the value of the equity of your home... so if you have $15,000 in non-exempt equity, you'll most likely have to write a check to the Trustee for $15,000 or surrender the home. no ,but if you include the Mortgage on your property in your bankruptcy,most likely you will have to surrender the property to a court appointed trustee
If you filed bankruptcy in Dec of 2004 can you get your refund that has already been taken for 2002?
No, the IRS will get to keep it. And, even if you could get it back, the bankruptcy trustee would probably take it to distribute to your creditors.
What type of attorney protects creditors when there is a bankruptcy?
Bankruptcy trustee.
A trustee removed the bank's lien so he can liquidate the property to pay creditors. Can a property be released from a mortgage if one person is on the mortgage and two people are on the deed?
A duly appointed trustee in bankruptcy can obtain permission from the court to sell the property free from encumbrances. That is the only way the property can be transferred free from the creditors liens.
Why would your bankruptcy trustee object to your stopping your bankruptcy?
You might have had assets in excess of your statutory exemptions that the trustee is legally obligated to collect and pay your creditors.
Why can a trustee take your income tax return if you are filing a chapter 7 bankruptcy which relieves you of your debt and does the trustee give the money to the creditors?
The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
Can creditors object to a bankruptcy filing or plan?
Yes. Each type of bankruptcy allows creditors to object to specific debts included in the plan or the manner in which the plan addresses the repayment or discharge. In Chapter 7 Bankruptcy, creditors generally have 60 days after the first creditors meeting to object to the discharge of a specific debt. If no objections are filed, the court will issue the discharge order and the trustee will proceed to collect and sell the assets, then distribute the proceeds to the creditors under a predetermined system. If there are objections, the bankruptcy itself, less the objected debts, continues through to discharge. It may be necessary to have a trial before a judge to resolve the items that creditors objected to. In a Chapter 13 case, creditors are given an opportunity to object to the plan for repayment. If there are no objections filed by creditors or the trustee, the plan may be confirmed as filed. After the plan is confirmed, the trustee will distribute the payments from the debtor to creditors until the
Will the bankruptcy trustee take all of your tax return refund?
I think it depends on when the bankruptcy is discharged, but it would be discussed at your meeting with the creditors and the trustee. If it wasn't discussed, then the refund is yours.
What is a Chapter 13 trustee used for?
Chapter 13 trustee is an entity, generally an individual, with the responsibility of managing a chapter 13 bankruptcy estate. The Chapter 13 receives the debtor's monthly payments and then distributes those funds proportionally to the debtor's creditors.
When a bankruptcy case is dismissed for missed payments what happens to the money already paid into the plans?
If the court has already confirmed the chapter 13 plan then the money already paid is distributed to the creditors. Basically, since the case was not discharged, you still owe the debt, so you made payments towards the debt while in bankruptcy. If the plan was not yet confirmed by the court, the money is returned to the debtor by the trustee save for a small amount for the trustee's expenses (trustee would ask for this in his motion to dismiss). Money would not be distributed to creditors by the trustee until after the proposed chapter 13 plan is confirmed.
Can a trustee find out from the IRS about a recent 1300 gambling winning if you are going to file Chapter 7 in a month and can he or she demand this money even if you've already spent it?
The trustee will look at your entire financial situation based on the information that you provided in your bankruptcy filing and supplemental documentation, but I am unaware of any ability or authority foro the trustee to be able to get information from the IRS. You are LEGALLY REQUIRED to disclose the winnings when you file for bankruptcy. Failure to do so would be bankruptcy fraud and could result in the denial of your discharge if this information comes to the attention fo the court and/or the trustee. If you made preferential payments to creditors, the trusted might ask for a refund of those payments to be distributed to all of your creditors.
If you are say a year into a 60 month chapter 13 bankruptcy and you receive a small inheritance not enough to pay debts what is your obligation?
Your obligation is to let your attorney and/or bankruptcy trustee know about this. They will decide if the asset needs to be divided among creditors or included in your payments.
What happens when your borrower files bankruptcy?
Assuming this is a straight bankruptcy, the mortgagee would lose the money that is owed to it on the mortgage loan. A bankrupt person or corporation loses all of his/her/ its assets to the Trustee in Bankruptcy so that the Trustee can liquidate those assets and distribute the net proceeds to the creditors. The mortgage loan is an asset which is then sold to the highest bidder along with the mortgage lien. The mortgage holder will now make the mortgage payments to whoever purchased the mortgage loan from the bankrupt estate. The mortgagee is left with nothing.
Can you refinance in chapter 13?
Yes. If you have had 12 months of on time payments to the truste and your mortgage has been paid on time,While participating in a Chapter 13 bankruptcy, no major financial transactions are allowed w/o the permisson of the bankruptcy trustee.
