To keep all my issues on one thread as suggested, I have some questions about filing for bankruptcy myself. Backstory: Hired a pro bono lawyer, he withdrew from my case (details elsewhere). I was left trying to continue my lawsuit against the defendant who filed bankruptcy and I lost my job. I'm working now but I went several months being obsessed with the case and didn't work while my spouse supported me so I'm far behind on my bills.
One of the problems with the defendant/debtor was that they misapplied approximately 12 principle curtailment payments and took money out of my escrow. By sending multiple qualified written requests to correct this and to also get the total interest and total of payments on the loan since I had received a home mod when the mortgage was being serviced by BOA, the defendant/debtor would not correct nor would they honestly answer any questions regarding my loan nor would they supply the total of payment or interest owed. I did force them to finally admit that they had given me previous incorrect information concerning other things but in my opinion, they knew they we're filing bankruptcy and just flat out didn't care. But this is not all, I found out shortly before they filed bankruptcy that they got a BPO on my home three years after it was modified and serviced the loan using that value which meant they also collected private mortgage insurance past the date they were supposed to collect it. There is some evidence now that they may have modified the loan themselves and I never even knew about it. I was so intensely frustrated with them and their attorneys that I knew were dragging this out and they would not admit or correct obvious errors and because they breached the deed, that I finally told them to bug off and that wasn't going to pay them another dime. So essentially, I stopped paying my mortgage over a year ago. That actually should have helped me get caught with other creditors but then my spouse also lost a job last year and we got really behind so it looks like bankruptcy is now inevitable.
Defendant/debtor did not attempt foreclosure, they sent a loan mod package and I sent a letter back telling them to stick it up their rear end, that I rescinded my contract for non performance and breach without even knowing if I could do that. This is what blind anger does, it makes you do stupid stuff. Now the mortgage servicing rights have been sold and the new servicer just sent me a loan mod package and I disputed the debt owed. I know the new servicer is likely to foreclose soon which I plan to file for another preliminary injunction to stop. I'm going for a permanent one but of course, being pro se, I'm not likely to get it. I honestly don't care anymore. This has been one of the worst and most stressful experiences of my life and I've accepted the fact that I'm going to have to file bankruptcy, dealt with the embarrassment of it, the feelings of inadequacy, etc. but angry that we will most likely lose our home in which we have a good bit of equity.
I did meet with a couple of bankruptcy attorneys and they did not look at my lawsuit at all. One suggested that I could protect the house in a chapter 7 assuming that I just kept making payments. I didn't like this answer because I don't want to pay anything at all until at minimum, my mortgage is straightened out and the amount due is accurate. I also think I have too much equity. The other one advised a chapter 13 if I wanted to stay in the house and thought I would qualify for a loan modification and suggested I do that now. But again, I'm not going to pay anything at all until the mortgage is straightened out.
My questions are as follows:
What are the chances of the servicer foreclosing knowing there is a lawsuit in place and knowing that I have a claim in defendant/debtors bankruptcy?
If I went ahead and tried for a chapter 7 now, while my lawsuit is still pending, what are the chances of my current lawsuit being remanded to the bankruptcy court? I do not want this.
There is a very slight chance that now that my spouse and I are both working again, albeit making far less than we previously were, we could avoid bankruptcy all together with some serious budgeting and tightening of our belts. We owe about 85,000 in unsecured debt and there is $99,650 left owing in principle on the mortgage excluding the amounts not paid for the last year. There is also perhaps a very small chance that I could get granted a permanent injunction based on the grossly improper servicing of the loan. Under these circumstances, would it be best to wait and try and negotiate with some of our creditors instead of filing now? We're approaching 90 days late on some of our debts and credit is trashed.
Should we get the home appraised or contact some realtors and get a BPO now or wait until we're closer to filing?
Also, I did ask before but no one answered is there a deadline for ruling on a motion for preliminary injunction, equitable and declaratory relief? I thought that an injunction was like an emergency and had a time limit? This is not clear from the Federal Rules of Civil Procedure unless I just read it wrong. I know that a TRO is different but not sure about the preliminary injunction.