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  1. #1
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    Mar 2012
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    Default Bankruptcy and Foreclosure

    My question involves bankruptcy in the state of: Alaska
    Thank you in advance for considering this question for review.

    My 86 year old father-in-law is approx. two months behind in his mortgage payments. All he has is his soc security income. Recent medical bills pulled any and all remaining funds from his accounts. We've gone through the load modification process with him from start to finish and he has been denied. They refuse to deal with him to restructure the payments. If he were to file for bankruptcy, is there anyway he could remain in his house by paying whatever the court determines he can afford to pay? As far as we know, there have been no foreclosure proceedings begun....At least none we know of. If this were a viable option, what chapter of bankruptcy would he need to file? At this stage I don't think he can afford to care about his credit rating taking a hit if it would. Any suggestions, alternatives, ideas? Kind Regards, swimdog

  2. #2
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    Default Re: Bankruptcy and Foreclosure

    If he wants to try to keep the house, he should consult a bankruptcy lawyer about the possibility of a Chapter 13 bankruptcy.

  3. #3
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    Default Re: Bankruptcy and Foreclosure

    Thank you for the response MK. If in fact there is a possibility that he could accomplish this through a chapter 13 filing, is it better if the foreclosure proceedings have begun or would he have a greater chance of "success" to retain the home if he was to preempt the foreclosure proceedings with a c-13 filing first? Thanks again.

  4. #4
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    Default Re: Bankruptcy and Foreclosure

    He should consult with the bankruptcy lawyer sooner, not later.

  5. #5
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    Default Re: Bankruptcy and Foreclosure

    That wasn't the question. The question has to do with the actual filing of the c-13 and whether or not you know if it makes a difference on which side of the foreclosure the actual filing takes place. Apparently not, thank you very much.

  6. #6
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    Sep 2010
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    Default Re: Bankruptcy and Foreclosure

    Quote Quoting swimdog
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    The question has to do with the actual filing of the c-13 and whether or not you know if it makes a difference on which side of the foreclosure the actual filing takes place.
    1. It does not matter if a Chapter 13 is filed before or after a foreclosure has been set. What does matter is that the case must be filed before the foreclosure has been completed.

    2. Based upon your FIL's limited income, a Chapter 13 is not going to help. In a Chapter 13 a debtor can "cure" the pre petition default to the lender by making a monthly payment to a court appointed trustee over a period of 36 to 60 months. However, in addition to the "cure" payment, the debtor MUST resume regular monthly payments to the lender beginning the month after filing bk. The bk court cannot modify the rights of a lender that is solely secured by a debtor's principal residence therefore the court cannot direct the lender to take something less than the regular monthly payment.

    3. The ONLY thing the bk court can do (other than allowing a debtor to "cure & maintain" as stated above) is wipe out a wholly unsecured junior mortgage. So, if your FIL has two mortgages on the home and there is no equity in the property after consideration of the 1st (senior) mortgage, the court can remove the lien of the 2nd (junior) mortgage.

    Des.

  7. #7
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    Default Re: Bankruptcy and Foreclosure

    Excellent! Thanks Des for taking the time for the thorough explanation. It's greatly appreciated!!

    Curious if the 'freya' in your handle refers to the Halvorsen designed Freya 39 sailboat? Thanks again!!

  8. #8
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    Sep 2010
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    Default Re: Bankruptcy and Foreclosure

    Quote Quoting swimdog
    View Post
    Curious if the 'freya' in your handle refers to the Halvorsen designed Freya 39 sailboat?
    After Googling her, I can say that while my family has seen the likes of a Gulfstar 36, Hunter 28 and Oday 25 (there is one other but I cannot recall it - too many years have gone by) I have never had the pleasure of being on board a Freya. Since I am not the one in my family who sails, I am not familiar with her. The photos I saw seem similar to the Gulfstar but that is my very uneducated observation.

    Des.

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