Tag Archives: bankruptcy Court

Unauthorized Bankruptcy Mortgage Refinancing.

Unauthorized Bankruptcy Mortgage RefinancingConsidering an Unauthorized Bankruptcy Mortgage Refinancing? If you file a bankruptcy, you must get the bankruptcy court’s permission to refinance your mortgage (or enter into any new debts) while your assets are still part of the bankruptcy estate, controlled by the Court and the Trustee to avoid an unauthorized bankruptcy mortgage refinancing.

Here’s some court cases that explain the issues with the unauthorized bankruptcy mortgage refinancing.  The two courts involved are the First Circuit BAP and the Eighth Circuit BAP both addressed unauthorized post-petition refinancing.

In In re Marrero, the lender on the two mortgages obtained stay relief in order to foreclose because the debtor was behind on the mortgages. The Debtor, in order to avert the foreclosure, refinanced the indebtedness without notifying or obtaining authority from the Trustee or the Court. In the process, the lender cancelled the two earlier mortgages, and replaced them with a single new mortgage in its favor.

The Trustee moved the court to avoid the refinanced mortgages.  Affirming the Bankruptcy Court, the BAP held that the Trustee could avoid the new mortgage as an unauthorized post-petition transfer under S549(a). The Court found that the Mortgage Company could not use the good-faith defense of S549(c), since the lender had known about the bankruptcy case. Further, once the new mortgage was avoided by the Court, the property became unencumbered, because the prior mortgages had been released. The Trustee could, therefore, sell the property.

For more information about Bankruptcy and the unauthorized bankruptcy mortgage refinancing  – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081. FREE consultations can be scheduled by calling 404-348-4081.  Evening and Weekend hours are available to meet with an attorney.  If bankruptcy turns out to be the best way to move forward considering your alternatives, goals and financial challenges, payment plans are available if you need them.

 

 

Chapter 7 Bankruptcy

Chapter 7 BankruptcyChapter 7 bankruptcy is sometimes called “liquidation” bankruptcy because it cancels most types of debts. In Georgia, 91% of people who file bankruptcy, file under Chapter 7 Bankruptcy. During a Chapter 7 bankruptcy the bankruptcy trustee of the court liquidates your non-exempt property and distributes the proceeds to your creditors. You get to keep your exempt property.

For a chapter 7 bankruptcy, you will file a petition for bankruptcy. You will also need to file a few additional document within 15 days. These additional documents include:

  • a list of your creditors,
  • a list of your assets, debts, income, and financial transactions prior to filing the bankruptcy,
  • copies of your most recent federal tax return,
  • copies of your wage stubs,
  • a list of property you are claiming as exempt (that is property you are entitled to keep even though you are filing for bankruptcy),
  • information on what you plan to do with property that serves as collateral for a loan (such as a car or home),
  • proof that you have completed your pre-filing bankruptcy credit counseling,
  • and later in your bankruptcy case, proof you have competed budget counseling.

But most importantly you will be asked to compute your gross income during the six months prior to your bankruptcy filing date and compare that to the median income for your state. If your income is more than the median, you are asked a series of questions (called the “bankruptcy means test”) to determine if you could file a chapter 13 bankruptcy and pay some of your unsecured debts over time. Following the links below will give you some general bankruptcy information to consider.

Find out if a chapter 7 bankruptcy is the best answer to your debt problems and have an Attorney run a FREE “means test”. Contact the Remboldt Law Firm, LLC at 404-348-4081 to schedule a FREE Attorney consultation and see if the “bankruptcy means test” will allow for a chapter 7 bankruptcy.