Bankruptcy Chat Archive

Date: October 27, 2009
Host: Michael D, Siegel

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Bankruptcy is traumatic enough as it is, what with facing financial ruin and dealing with a roller coaster of emotions, without adding the mind-numbing details of the bankruptcy code to sort out. Join Michael Siegel, an attorney who deals with bankruptcy and other credit issues, on October 27th at 10 PM Eastern (9 Central, 7 Pacific), to get your bankruptcy or other consumer credit questions answered.

MICHAEL SIEGEL practices in the fields of bankruptcy, consumer rights, commercial litigation and real estate. His main office is in New York City, and he maintains an office in Jersey City, New Jersey. Michael spent eight years representing large institutional creditors at large law firms in New York City and New Jersey. Now a partner at Siegel & Siegel, P.C., Michael represents mostly individual consumers and businesses. Michael is a graduate of the University of Chicago Law School. He is admitted to the bars of New York State and New Jersey, as well as the Federal Courts in New Jersey and the Eastern and Southern Districts of New York. http://www.lawyers.com/siegelandsiegel

Live Chat Transcript

Michael D. Siegel: "Kathie Jo: "Hi, My husband and I reside in Virgina, and entered into a chapter 13 bankruptcy in May 2009. My husband needed and got a liver transplant in April 2009 and our home was not included in the bankruptcy but by spring of next year our mortgage payments will double and we will be unable to pay the morgtage and the bankruptcy payout. We need to refinance our mortgage and also do a bankruptcy buyout . Is this possible? If so, who can help us? If not possible, can we have a family member or friend buy our home and let us pay them like a rental until we can buy back at later date? Looking for any possible way to keep home, my husband is back to work full time.""

Michael D. Siegel: "Hi Kathie. As you see, I have your question. Let me look at it and answer."

Kathie Jo: "Thank you, Michael"

Michael D. Siegel: "Generally, the trustee will let you prepay your plan if you refinance, but that means paying commissions to the trustee. You are unlikely to refinance with a bank given your bankruptcy and financial problems."

Michael D. Siegel: "If you have a family member buy your home, the methodology is the same. You prepay your plan."

Michael D. Siegel: "The issue is whether you have a 100% payment to unsecured creditors. If not, the trustee might require you to raise your percentage payment in any buyour."

Kathie Jo: "No, we do not"

Michael D. Siegel: "If there is no equity in your home, you might consider conversion to Chapter 7 to discharge your other debt. Then you would need to reaffirm your mortgage to keep your home."

Kathie Jo: "No equity and we were told we made just over the means to do a 7"

Michael D. Siegel: "If you are close to the line, a good lawyer should be able to find some dollars to get you into a 7."

Kathie Jo: "do we have to wait until our ARM goes up in March or can we start getting things in order now?"

Michael D. Siegel: "Get things in order now. The means test takes into account adjustments in the mortgage payment as you enter 60 months of prospective mortgage payments."

Michael D. Siegel: "Also, it would be impossible to refi if you have no equity. And, no family member should overpay for your house, just to payoff the mortgage and the trustee."

Michael D. Siegel: "You cannot sell or refi without trustee consent."

Kathie Jo: "Do we use the same lawyer who took us into the 13?"

Michael D. Siegel: "You are where you are obviously, but it seems the timing of your filing was not well considered. You usually would use the same lawyer, but if he cannot maniputate the means test to get you in a 7, then you may need to get another lawyer."

Michael D. Siegel: "Or at least a second opinion."

Kathie Jo: "yes, a nice man, but, it took him way too long to get us filed and then were told we couldn't do the 7"

Michael D. Siegel: "Good luck to you."

Kathie Jo: "Thank you for your time"

Michael D. Siegel: "Kathie, did you have any other questions tonight."

Michael D. Siegel: "If not, that brings us to the end of the chat for tonight. I will be back in two weeks. Until then, use the community section of the site."