Prospective Client Facing Sale of Home in Ch 7

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I did a State Bar convention program on this topic last October. Will be happy to throw in my $0.02.
Sent from my iPhone
Law Office of Eric Alan Mitnick
(310) 792-5864 MitnickLaw@aol.com
Communications and attachments may be confidential and attorney-client privileged. Please beware, there are probably typos.
On Aug 29, 2014, at 7:25 PM, "cdcbaa cdcbaamailbox@gmail.com [cdcbaa]" wrote:
> Wes, Larry, and I will discuss this issue, and even selling fully encumbered assets when the lienholders agree to a surcharge, at the cle. We will discuss when there is a requirement that unsecured creditors get a significant distribution.
>
> Persons who represent consumers should attend.
>
> d
>
> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
>
>
> On Aug 27, 2014, at 10:39 PM, "Michael Avanesian michael@avanesianlaw.com [cdcbaa]" wrote:
>
>>
>> Wes also takes the position that a trustee can administer fully encumbered property if there is equity tied up by a tax lien. I'm sure he will correct me but I believe this is how it would work:
>>
>> Home worth 500k "encumbered" as: 250k mortgage 100k exemption 150k+ tax lien.
>>
>> Most people would think, "no equity for unsecured creditors, trustee must abandon." Wes would take the position that under 724(b), he can sell the property and distribute first, to the secured lender, then to himself, then to his attorney THEN to the tax collector.
>>
>> Only reason I mentioned him by name is he taught this to us at the last specialist CLE. I was totally shocked by it (I hope I am right in that this is what he meant). I think the CLE is well worth it since Dennis and Wes share so much.
>>
>> It's even worse than I mentioned above though. I am a math professor so I like examples
>>
>> Home worth 625k (after cost of sale etc), first 300k, tax lien 200k, junior lien 100k. Trustee + attorney fees 150k. This is how distribution would work:
>>
>> Bank 300k
>> Trustee 150k
>> Tax lien 50k
>> Junior lien 100k
>> Tax lien 25k
>>
>> Only paid the taxing agency 75k despite all that equity!
>>
>> Sincerely,
>> Michael Avanesian
>>
>> On Wed, Aug 27, 2014 at 9:23 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] wrote:
>>
>> The trustee can make a deal with the tax autthoritiies. The trustee sells for the taxing agencies and for the unsecured creditors. Your client has let the finances get too far out of wack to save the home..
>> d
>>
>> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
>>
>>
>> On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com [cdcbaa]" wrote:
>>
>>>
>>> Hello listmates
>>>
>>>
>>>
>>> I had a prospective client come to me who is currently in a Ch 7 that he filed pro per. He filed to stop a foreclosure and now the trustee is looking to sell his home. There are significant tax liens on the property but the trustee is negotiating with the IRS to reduce the liens in order to free up some equity for the unsecured creditors (of which he only has one who is owed $35k).
>>>
>>>
>>>
>>> I initially though he could convert to a Ch 13, however, it doesn't appear that the conversion would be in good faith given that he cannot fund a plan that would pay back the arrears and pay back the IRS tax debt. Additionally, the debtor had filed a previous CH 13 which was dismissed and he was barred from filing another Ch 13 until late this August.
>>>
>>>
>>>
>>> I'm really not sure what options the debtor has available at this point.
>>>
>>>
>>>
>>> Curious if any of you had any suggestions.
>>>
>>>
>>>
>>> Thanks
>>>
>>> Mike
>>>
>>>
>>>
>>>
>>>
>>>
>>> Mike Manning
>>>
>>>
>>>
>>> 4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
>>>
>>> o 949.200-8757 ext 1009 | f 866.843.8308
>>>
>>>
>>>
>>> mike@manninglawoffice.com
>>>
>>> manninglawoffice.A
>>>
>>
>>
>
>
I did a State Bar convention program on this topic last October. Will be happy to throw in my $0.02. Sent from my iPhoneLaw Office of Eric Alan Mitnick (310) 792-5864 MitnickLaw@aol.comCommunications and attachments may be confidential and attorney-client privileged. Please beware, there are probably typos. On Aug 29, 2014, at 7:25 PM, "cdcbaa cdcbaamailbox@gmail.com [cdcbaa]" <cdcbaa@yahoogroups.com> wrote:

Wes, Larry, and I will discuss this issue, and even selling fully encumbered assets when the lienholders agree to a surcharge, at the cle. We will discuss when there is a requirement that unsecured creditors get a significant distribution.Persons who represent consumers should attend.dDennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voiceOn Aug 27, 2014, at 10:39 PM, "Michael Avanesian michael@avanesianlaw.com [cdcbaa]" <cdcbaa@yahoogroups.com> wrote:

Wes also takes the position that a trustee can administer fully encumbered property if there is equity tied up by a tax lien. I'm sure he will correct me but I believe this is how it would work:
Home worth 500k "encumbered" as: 250k mortgage 100k exemption 150k+ tax lien. Most people would think, "no equity for unsecured creditors, trustee must abandon." Wes would take the position that under 724(b), he can sell the property and distribute first, to the secured lender, then to himself, then to his attorney THEN to the tax collector.
Only reason I mentioned him by name is he taught this to us at the last specialist CLE. I was totally shocked by it (I hope I am right in that this is what he meant). I think the CLE is well worth it since Dennis and Wes share so much.
It's even worse than I mentioned above though. I am a math professor so I like examples :)Home worth 625k (after cost of sale etc), first 300k, tax lien 200k, junior lien 100k. Trustee + attorney fees 150k. This is how distribution would work:
Bank 300kTrustee 150kTax lien 50kJunior lien 100kTax lien 25kOnly paid the taxing agency 75k despite all that equity!
Sincerely, Michael AvanesianOn Wed, Aug 27, 2014 at 9:23 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:

The trustee can make a deal with the tax autthoritiies. The trustee sells for the taxing agencies and for the unsecured creditors. Your client has let the finances get too far out of wack to save the home..
dDennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com [cdcbaa]" <cdcbaa@yahoogroups.com> wrote:

Hello listmates

I had a prospective client come to me who is currently in a Ch 7 that he filed pro per. He filed to stop a foreclosure and now the trustee is looking to sell his home. There are significant tax liens on the property but the trustee is
negotiating with the IRS to reduce the liens in order to free up some equity for the unsecured creditors (of which he only has one who is owed $35k).

I initially though he could convert to a Ch 13, however, it doesn't appear that the conversion would be in good faith given that he cannot fund a plan that would pay back the arrears and pay back the IRS tax debt. Additionally, the debtor
had filed a previous CH 13 which was dismissed and he was barred from filing another Ch 13 until late this August.

I'm really not sure what options the debtor has available at this point.

Curious if any of you had any suggestions.

Thanks
Mike


Mike Manning

4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
o 949.200-8757 ext 1009 | f 866.843.8308


The post was migrated from Yahoo.

[Yahoo Bot]

Wes, Larry, and I will discuss this issue, and even selling fully encumbered assets when the lienholders agree to a surcharge, at the cle. We will discuss when there is a requirement that unsecured creditors get a significant distribution.
Persons who represent consumers should attend.
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On Aug 27, 2014, at 10:39 PM, "Michael Avanesian michael@avanesianlaw.com [cdcbaa]" wrote:
>
> Wes also takes the position that a trustee can administer fully encumbered property if there is equity tied up by a tax lien. I'm sure he will correct me but I believe this is how it would work:
>
> Home worth 500k "encumbered" as: 250k mortgage 100k exemption 150k+ tax lien.
>
> Most people would think, "no equity for unsecured creditors, trustee must abandon." Wes would take the position that under 724(b), he can sell the property and distribute first, to the secured lender, then to himself, then to his attorney THEN to the tax collector.
>
> Only reason I mentioned him by name is he taught this to us at the last specialist CLE. I was totally shocked by it (I hope I am right in that this is what he meant). I think the CLE is well worth it since Dennis and Wes share so much.
>
> It's even worse than I mentioned above though. I am a math professor so I like examples
>
> Home worth 625k (after cost of sale etc), first 300k, tax lien 200k, junior lien 100k. Trustee + attorney fees 150k. This is how distribution would work:
>
> Bank 300k
> Trustee 150k
> Tax lien 50k
> Junior lien 100k
> Tax lien 25k
>
> Only paid the taxing agency 75k despite all that equity!
>
> Sincerely,
> Michael Avanesian
>
>> On Wed, Aug 27, 2014 at 9:23 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] wrote:
>>
>> The trustee can make a deal with the tax autthoritiies. The trustee sells for the taxing agencies and for the unsecured creditors. Your client has let the finances get too far out of wack to save the home..
>> d
>>
>> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
>>
>>
>>> On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com [cdcbaa]" wrote:
>>>
>>>
>>> Hello listmates
>>>
>>>
>>>
>>> I had a prospective client come to me who is currently in a Ch 7 that he filed pro per. He filed to stop a foreclosure and now the trustee is looking to sell his home. There are significant tax liens on the property but the trustee is negotiating with the IRS to reduce the liens in order to free up some equity for the unsecured creditors (of which he only has one who is owed $35k).
>>>
>>>
>>>
>>> I initially though he could convert to a Ch 13, however, it doesn't appear that the conversion would be in good faith given that he cannot fund a plan that would pay back the arrears and pay back the IRS tax debt. Additionally, the debtor had filed a previous CH 13 which was dismissed and he was barred from filing another Ch 13 until late this August.
>>>
>>>
>>>
>>> I'm really not sure what options the debtor has available at this point.
>>>
>>>
>>>
>>> Curious if any of you had any suggestions.
>>>
>>>
>>>
>>> Thanks
>>>
>>> Mike
>>>
>>>
>>>
>>>
>>>
>>>
>>> Mike Manning
>>>
>>>
>>>
>>> 4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
>>>
>>> o 949.200-8757 ext 1009 | f 866.843.8308
>>>
>>>
>>>
>>> mike@manninglawoffice.com
>>>
>>> manninglawoffice.A
>>>
>>
>
>
mike@manninglawoffice.com
manninglawoffice.A

The post was migrated from Yahoo.

[Yahoo Bot]

The post was migrated from Yahoo.

[Yahoo Bot]

Yes, good catch! I would modify the examples to include the payment to the
Debtor after the bank. The lesson though is that if there is a tax lien on
some of the equity, a fully encumbered asset may be administered by some
trustees. I assume there would have to be meaningful distribution to the
taxing agency.
Sincerely,
Michael Avanesian
Law Offices of David A. Tilem
www.tilemlaw.com
818-507-6000
On Thu, Aug 28, 2014 at 7:50 AM, Kirk Brennan kirkinhermosa@gmail.com
[cdcbaa] wrote:
>
>
> In this scenario, wouldn't the exemption have to be paid to the debtor
> first?
>
>
> On Wed, Aug 27, 2014 at 10:39 PM, Michael Avanesian
> michael@avanesianlaw.com [cdcbaa] wrote:
>
>>
>>
>> Wes also takes the position that a trustee can administer fully
>> encumbered property if there is equity tied up by a tax lien. I'm sure he
>> will correct me but I believe this is how it would work:
>>
>> Home worth 500k "encumbered" as: 250k mortgage 100k exemption 150k+ tax
>> lien.
>>
>> Most people would think, "no equity for unsecured creditors, trustee must
>> abandon." Wes would take the position that under 724(b), he can sell the
>> property and distribute first, to the secured lender, then to himself, then
>> to his attorney THEN to the tax collector.
>>
>> Only reason I mentioned him by name is he taught this to us at the last
>> specialist CLE. I was totally shocked by it (I hope I am right in that this
>> is what he meant). I think the CLE is well worth it since Dennis and Wes
>> share so much.
>>
>> It's even worse than I mentioned above though. I am a math professor so I
>> like examples
>>
>> Home worth 625k (after cost of sale etc), first 300k, tax lien 200k,
>> junior lien 100k. Trustee + attorney fees 150k. This is how distribution
>> would work:
>>
>> Bank 300k
>> Trustee 150k
>> Tax lien 50k
>> Junior lien 100k
>> Tax lien 25k
>>
>> Only paid the taxing agency 75k despite all that equity!
>>
>> Sincerely,
>> Michael Avanesian
>>
>> On Wed, Aug 27, 2014 at 9:23 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa]
>> wrote:
>>
>>>
>>>
>>> The trustee can make a deal with the tax autthoritiies. The trustee
>>> sells for the taxing agencies and for the unsecured creditors. Your
>>> client has let the finances get too far out of wack to save the home..
>>> d
>>>
>>> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503
>>> 310-328-1001-voice
>>> [image: cid:part1.03050307.05030101@bklaw.com]
>>>
>>> On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com
>>> [cdcbaa]" wrote:
>>>
>>>
>>>
>>> Hello listmates
>>>
>>>
>>>
>>> I had a prospective client come to me who is currently in a Ch 7 that he
>>> filed pro per. He filed to stop a foreclosure and now the trustee is
>>> looking to sell his home. There are significant tax liens on the property
>>> but the trustee is negotiating with the IRS to reduce the liens in order to
>>> free up some equity for the unsecured creditors (of which he only has one
>>> who is owed $35k).
>>>
>>>
>>>
>>> I initially though he could convert to a Ch 13, however, it doesn't
>>> appear that the conversion would be in good faith given that he cannot fund
>>> a plan that would pay back the arrears and pay back the IRS tax debt.
>>> Additionally, the debtor had filed a previous CH 13 which was dismissed and
>>> he was barred from filing another Ch 13 until late this August.
>>>
>>>
>>>
>>> I'm really not sure what options the debtor has available at this
>>> point.
>>>
>>>
>>>
>>> Curious if any of you had any suggestions.
>>>
>>>
>>>
>>> Thanks
>>>
>>> Mike
>>>
>>>
>>>
>>>
>>>
>>>
>>> * Mike Manning*
>>>
>>>
>>>
>>> 4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
>>>
>>> o 949.200-8757 ext 1009 | f 866.843.8308
>>>
>>>
>>>
>>> mike@manninglawoffice.com
>>>
>>> manninglawoffice. A
>>>
>>>
>>
>
>
> --
> Kirk Brennan
>
> CONFIDENTIALITY NOTICE: This e-mail and any attachments are for the
> exclusive and confidential use of the intended recipient. If you are not
> the intended recipient, please do not read, distribute or take action in
> reliance on this message. If you have received this message in error,
> please notify us immediately by return e-mail and promptly delete this
> message and its attachments from your computer system. We do not waive
> attorney-client or work product privilege by the transmission of this
> message.
> TAX ADVICE NOTICE: Tax advice, if any, contained in this e-mail does not
> constitute a "reliance opinion" as defined in IRS Circular 230 and may not
> be used to establish reasonable reliance on the opinion of counsel for the
> purpose of avoiding the penalty imposed by Section 6662A of the Internal
> Revenue Code. The firm provides reliance opinions only in formal opinion
> letters containing the signature of a director.
>
>
>
Yes, good catch! I would modify the examples to include the payment to the Debtor after the bank. The lesson though is thatif there is a tax lien on some of the equity, afully encumbered asset may be administered by some trustees. I assume there would have to be meaningful distribution to the taxing agency.
Sincerely, Michael AvanesianLaw Offices of David A. Tilemmike@manninglawoffice.com
manninglawoffice.A

The post was migrated from Yahoo.

[Yahoo Bot]

In this scenario, wouldn't the exemption have to be paid to the debtor
first?
On Wed, Aug 27, 2014 at 10:39 PM, Michael Avanesian michael@avanesianlaw.com
[cdcbaa] wrote:
>
>
> Wes also takes the position that a trustee can administer fully encumbered
> property if there is equity tied up by a tax lien. I'm sure he will correct
> me but I believe this is how it would work:
>
> Home worth 500k "encumbered" as: 250k mortgage 100k exemption 150k+ tax
> lien.
>
> Most people would think, "no equity for unsecured creditors, trustee must
> abandon." Wes would take the position that under 724(b), he can sell the
> property and distribute first, to the secured lender, then to himself, then
> to his attorney THEN to the tax collector.
>
> Only reason I mentioned him by name is he taught this to us at the last
> specialist CLE. I was totally shocked by it (I hope I am right in that this
> is what he meant). I think the CLE is well worth it since Dennis and Wes
> share so much.
>
> It's even worse than I mentioned above though. I am a math professor so I
> like examples
>
> Home worth 625k (after cost of sale etc), first 300k, tax lien 200k,
> junior lien 100k. Trustee + attorney fees 150k. This is how distribution
> would work:
>
> Bank 300k
> Trustee 150k
> Tax lien 50k
> Junior lien 100k
> Tax lien 25k
>
> Only paid the taxing agency 75k despite all that equity!
>
> Sincerely,
> Michael Avanesian
>
> On Wed, Aug 27, 2014 at 9:23 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] cdcbaa@yahoogroups.com> wrote:
>
>>
>>
>> The trustee can make a deal with the tax autthoritiies. The trustee
>> sells for the taxing agencies and for the unsecured creditors. Your
>> client has let the finances get too far out of wack to save the home..
>> d
>>
>> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503
>> 310-328-1001-voice
>> [image: cid:part1.03050307.05030101@bklaw.com]
>>
>> On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com
>> [cdcbaa]" wrote:
>>
>>
>>
>> Hello listmates
>>
>>
>>
>> I had a prospective client come to me who is currently in a Ch 7 that he
>> filed pro per. He filed to stop a foreclosure and now the trustee is
>> looking to sell his home. There are significant tax liens on the property
>> but the trustee is negotiating with the IRS to reduce the liens in order to
>> free up some equity for the unsecured creditors (of which he only has one
>> who is owed $35k).
>>
>>
>>
>> I initially though he could convert to a Ch 13, however, it doesn't
>> appear that the conversion would be in good faith given that he cannot fund
>> a plan that would pay back the arrears and pay back the IRS tax debt.
>> Additionally, the debtor had filed a previous CH 13 which was dismissed and
>> he was barred from filing another Ch 13 until late this August.
>>
>>
>>
>> I'm really not sure what options the debtor has available at this point.
>>
>>
>>
>> Curious if any of you had any suggestions.
>>
>>
>>
>> Thanks
>>
>> Mike
>>
>>
>>
>>
>>
>>
>> * Mike Manning*
>>
>>
>>
>> 4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
>>
>> o 949.200-8757 ext 1009 | f 866.843.8308
>>
>>
>>
>> mike@manninglawoffice.com
>>
>> manninglawoffice. A
>>
>>
>
>
Kirk Brennan
CONFIDENTIALITY NOTICE: This e-mail and any attachments are for the
exclusive and confidential use of the intended recipient. If you are not
the intended recipient, please do not read, distribute or take action in
reliance on this message. If you have received this message in error,
please notify us immediately by return e-mail and promptly delete this
message and its attachments from your computer system. We do not waive
attorney-client or work product privilege by the transmission of this
message.
TAX ADVICE NOTICE: Tax advice, if any, contained in this e-mail does not
constitute a "reliance opinion" as defined in IRS Circular 230 and may not
be used to establish reasonable reliance on the opinion of counsel for the
purpose of avoiding the penalty imposed by Section 6662A of the Internal
Revenue Code. The firm provides reliance opinions only in formal opinion
letters containing the signature of a director.
In this scenario, wouldn't the exemption have to be paid to the debtor first?On Wed, Aug 27, 2014 at 10:39 PM, Michael Avanesian michael@avanesianlaw.com [cdcbaa] <mike@manninglawoffice.com
manninglawoffice.A

The post was migrated from Yahoo.

[Yahoo Bot]

Wes also takes the position that a trustee can administer fully encumbered
property if there is equity tied up by a tax lien. I'm sure he will correct
me but I believe this is how it would work:
Home worth 500k "encumbered" as: 250k mortgage 100k exemption 150k+ tax
lien.
Most people would think, "no equity for unsecured creditors, trustee must
abandon." Wes would take the position that under 724(b), he can sell the
property and distribute first, to the secured lender, then to himself, then
to his attorney THEN to the tax collector.
Only reason I mentioned him by name is he taught this to us at the last
specialist CLE. I was totally shocked by it (I hope I am right in that this
is what he meant). I think the CLE is well worth it since Dennis and Wes
share so much.
It's even worse than I mentioned above though. I am a math professor so I
like examples
Home worth 625k (after cost of sale etc), first 300k, tax lien 200k, junior
lien 100k. Trustee + attorney fees 150k. This is how distribution would
work:
Bank 300k
Trustee 150k
Tax lien 50k
Junior lien 100k
Tax lien 25k
Only paid the taxing agency 75k despite all that equity!
Sincerely,
Michael Avanesian
On Wed, Aug 27, 2014 at 9:23 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] wrote:
>
>
> The trustee can make a deal with the tax autthoritiies. The trustee
> sells for the taxing agencies and for the unsecured creditors. Your
> client has let the finances get too far out of wack to save the home..
> d
>
> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503
> 310-328-1001-voice
> [image: cid:part1.03050307.05030101@bklaw.com]
>
> On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com
> [cdcbaa]" wrote:
>
>
>
> Hello listmates
>
>
>
> I had a prospective client come to me who is currently in a Ch 7 that he
> filed pro per. He filed to stop a foreclosure and now the trustee is
> looking to sell his home. There are significant tax liens on the property
> but the trustee is negotiating with the IRS to reduce the liens in order to
> free up some equity for the unsecured creditors (of which he only has one
> who is owed $35k).
>
>
>
> I initially though he could convert to a Ch 13, however, it doesn't appear
> that the conversion would be in good faith given that he cannot fund a plan
> that would pay back the arrears and pay back the IRS tax debt.
> Additionally, the debtor had filed a previous CH 13 which was dismissed and
> he was barred from filing another Ch 13 until late this August.
>
>
>
> I'm really not sure what options the debtor has available at this point.
>
>
>
> Curious if any of you had any suggestions.
>
>
>
> Thanks
>
> Mike
>
>
>
>
>
>
> * Mike Manning*
>
>
>
> 4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
>
> o 949.200-8757 ext 1009 | f 866.843.8308
>
>
>
> mike@manninglawoffice.com
>
> manninglawoffice. A
>
>
>
Wes also takes the position that a trustee can administer fully encumbered property if there is equity tied up by a tax lien. I'm sure he will correct me but I believe this is how it would work:
Home worth 500k "encumbered" as: 250k mortgage 100k exemption 150k+ tax lien.Most people would think, "no equity for unsecured creditors, trustee must abandon." Wes would take the position that under 724(b), he can sell the property and distribute first, to the secured lender, then to himself, then to his attorney THEN to the tax collector.
Only reason I mentioned him by name is he taught this to us at the last specialist CLE. I was totally shocked by it (I hope I am right in that this is what he meant). I think the CLE is well worth it since Dennis and Wes share so much.
It's even worse than I mentioned above though. I am a math professor so I like examples :)Home worth 625k (after cost of sale etc), first 300k, tax lien 200k, junior lien 100k. Trustee + attorney fees 150k. This is how distribution would work:
Bank 300kTrustee 150kTax lien 50kJunior lien 100kTax lien 25kOnly paid the taxing agency 75k despite all that equity!
Sincerely, Michael AvanesianOn Wed, Aug 27, 2014 at 9:23 PM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:
The trustee can make a deal with the tax autthoritiies. d creditors. Your client has let the finances get too far dDennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com [cdcbaa]" <cdcbaa@yahoogroups.com> wrote:
Hello listmates

I had a prospective client come to me who is currently in a Ch 7 that he filed pro per. He filed to stop a foreclosure and now the trustee is looking to sell his home. There are significant tax liens on the property but the trustee is
negotiating with the IRS to reduce the liens in order to free up some equity for the unsecured creditors (of which he only has one who is owed $35k).

I initially though he could convert to a Ch 13, however, it doesn't appear that the conversion would be in good faith given that he cannot fund a plan that would pay back the arrears and pay back the IRS tax debt. had filed a previous CH 13 which was dismissed and he was barred from filing another Ch 13 until late this August.

I'm really not sure what options the debtor has available at this point.
Curious if any of you had any suggestions.

Thanks
Mike
Mike Manning

4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
o 949.200-8757 ext 1009 | f13.5pt">


The post was migrated from Yahoo.

[Yahoo Bot]

The trustee can make a deal with the tax autthoritiies. The trustee sells for the taxing agencies and for the unsecured creditors. Your client has let the finances get too far out of wack to save the home..
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On Jul 31, 2014, at 8:43 AM, "Michael Manning mike@manninglawoffice.com [cdcbaa]" wrote:
>
> Hello listmates
>
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> I had a prospective client come to me who is currently in a Ch 7 that he filed pro per. He filed to stop a foreclosure and now the trustee is looking to sell his home. There are significant tax liens on the property but the trustee is negotiating with the IRS to reduce the liens in order to free up some equity for the unsecured creditors (of which he only has one who is owed $35k).
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> I initially though he could convert to a Ch 13, however, it doesn't appear that the conversion would be in good faith given that he cannot fund a plan that would pay back the arrears and pay back the IRS tax debt. Additionally, the debtor had filed a previous CH 13 which was dismissed and he was barred from filing another Ch 13 until late this August.
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> I'm really not sure what options the debtor has available at this point.>
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> Curious if any of you had any suggestions.
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> Thanks
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> Mike
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> Mike Manning
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> 4667 MacArthur Blvd., Suite 150 | Newport Beach, California 92660
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> o 949.200-8757 ext 1009 | f 866.843.8308
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> mike@manninglawoffice.com
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> manninglawoffice.A
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>
Mike Manning
manninglawoffice.A

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