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scheduling mtg debt for real estate where debtor not on loan
109(e) refers to individuals who owe debts. Where the debtor is an owner,
but is not personally liable for the loan secured by the property, I
believe that it is reasonable to argue, especially as to unsecured/undersecured
debt, that the debt of another does not count as part of the 109(e) debt
limits.
Just my $.02. Happy Holidays to all.
Law Office of Eric Alan Mitnick
21515 Hawthorne Boulevard, Ste. 1080
Torrance, CA 90503
(310) 792-5864; 792-5866 (fax)
MitnickLaw@aol.com
109(e) refers to individuals who owe debts. Where the debtor is an
owner, but is not personally liable for the loan secured by the property, Ibelieve that it is reasonable to argue, especially as to unsecured/undersecured
debt, that the debt of another does not count as part of the 109(e) debt
limits.
Just my $.02. Happy Holidays to all.
Law Office of
Eric Alan Mitnick21515 Hawthorne Boulevard, Ste. 1080Torrance, CA
90503(310) 792-5864; 792-5866
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To state the issue more clearly,
filing bankruptcy creates an estate.
when you fill out the schedules, you must list all claims against the estate.
If the estate owns property, all claims against the property must be listed, as they are claims against the estate.
All claims against the estate count for 109 eligibility.
dennis
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Mark:
Does debtor own the property or is debtor just on title.
If debtor just on title I don't list on A. I list in Statement of Affairs, property held for another.
Since Trustee takes property as a BFP, you cannot list on A. You make trustee BFP. If you list as property held for another, no BFP status as you have given trustee notice, with the filing of the case, that debtor does not own the property.
dennis
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Mark,
I see this in the Estate Planning side of my practice. The parents were
ill advised to transfer an interest in their house to their child. These
transfers are made to avoid the cost of creating a trust and to avoid
probate, however the transfer usually ignores the gift tax implication and
the loss of a full step up in basis. Usually the transfer is made with a
quitclaim deed and without the lender's knowledge. If the deed created a
joint tenancy then the debtor probably has an undivided proportional
interest in the FMV of the home. Bad estate planning, worst bk planning.
Larry Webb
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I'm sure this happens a lot, but for some reason this is my first time:
Debtor is on title to a house where debtor's parents live. However,
debtor is NOT on any of the loans against the house.
Obviously if we file a BK the ownership will get listed in Schedule "A",
but do I need to list the mortgages, etc. in Schedule "D" even if debtor
isn't obligated on them? And, if not, how is best to make it clear that
there is no equity to the debtor? Just list the equity amount as the
value of debtor's interest?
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/)
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