I have two side suggestions.
The first is, (in addition to all the things Gio mentioned) you can have
your client move out of his home. That allows you to bifurcate the second
(careful about the pitfalls associated with this approach, SARE status
etc). Too bad they are current on their first because sometimes all those
arrears, penalties, and unpaid property taxes add up and suddenly the
second is completely undersecured. Also keep in mind that in an 11, a
creditor that is more than just nominally secured by property has a right
to an 1111(b) election.
My other suggestion, which might be the better choice, is to first pursue a
loan mod. There are billions of dollars out there for these mods, why not
have your client benefit.
Sincerely,
Michael Avanesian
Attorney and Counselor at Law
818-817-1725
On Wed, May 29, 2013 at 10:55 AM, Dennis McG wrote:
> **
>
>
> Frank:
>
> Do you want to do a chapter 18 to avoid the absolute priority rule?
>
> If so, that is probably bad faith,
>
> But chatting with a US Trustee attorney and am told the ust does not
> object to ch 18's.
>
> d
>
>
> On Tuesday, May 28, 2013, FrankX19 wrote:
>
>> **
>>
>>
>> I have a potential client that is current on his first mortgage but a
>> couple years behind on this 2nd mortgage. The 2nd mortgage is not wholly
>> unsecured, so we can't avoid it. He wants to keep the property and
>> reorganize on the 2nd mortgage.
>>
>> He has quite a bit of unsecured debt that is in default (mainly credit
>> cards). Is there any downside to doing a Chapter 18 (ie. Chapter 7 to wipe
>> out unsecured debt and then a chapter 11 to reorganize on 2nd mortgage)?
>>
>> Thanks in advance.
>>
>> Frank
>>
>>
>>
>> Frank X. Ruggier
>> Price Law Group, APC
>> 15760 Ventura Blvd., Suite 1100
>> Encino, CA 91436
>> Direct: (818) 205-2406
>> Fax: (818) 907-2106
>>
www.pricelawgroup.com
>>
>>
>
I have two side suggestions. The first is, (in addition to all the things Gio mentioned) you can have your client move out of his home. That allows you to bifurcate the second (careful about the pitfalls associated with this approach, SARE status etc). Too bad they are current on their first because sometimes all those arrears,penalties, and unpaid property taxesadd up and suddenly the second is completely undersecured. Also keep in mind that in an 11, a creditor that is more than just nominally secured by property has a right to an 1111(b) election.
My other suggestion, which might be thebetter choice, is to first pursue a loan mod. There are billions of dollars out there for these mods, why not have your client benefit.
Sincerely, Michael AvanesianAttorney and Counselor at Law818-817-1725
On Wed, May 29, 2013 at 10:55 AM, Dennis McG <
cdcbaamailbox@gmail.com> wrote:
Frank:Do you want to do a chapter 18 to avoid the absolute priority rule?If so, that is probably bad faith,But chatting with a US Trustee attorney and am told the ust does not object to ch 18's.
dOn Tuesday, May 28, 2013, FrankX19 wrote:
The post was migrated from Yahoo.