From The New York Times:
Widows Bankruptcy Case Poses Risk to Rent-Stabilized Tenants
At issue is whether a valuable lease can be treated as an asset in a personal bankruptcy, just like a car or a piece of land, and used to pay off debts.
http://nyti.ms/1gYEsMJ
Steven B. Lever
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Indeed. A chapter 7 trustee and professionals are likely to exhaust all but
a de minimis amount. Chapter 11 is the only way for your debtor to have
time to sell but may be prohibitively expensive unless you get someone to
loan client money for fees and costs with a lien on the property.
On Sunday, October 20, 2013, Steven B. Lever wrote:
> **
>
>
> I think it Chapter 7 is the best course of action because you probably
> could not make a chapter 13 work for the sale.
>
> The problem is that it's expensive because the Chapter 7 trustee will eat
> some of the equity and may even hire attorneys to take some of the surplus
> estate.
>
> Steven B. Lever
>
> Sent from my iPhone
>
> On Oct 19, 2013, at 7:44 PM, "
cnelson@lafsbc.org 'cvml', '
cnelson@lafsbc.org');>" > wrote:
>
>
>
> Good Evening All,
>
>
>
> I'm looking for a 3rd opinion on a situation I've never had to deal with
> before. My client is simultaneously facing a foreclosure on her mobile
> home and eviction from the mobile home park. Im currently considering
> filing a chapter 7 to allow the trustee to sell the property. My thought
> is that this will preserve the maximum amount of equity for my client. I> looking for your thoughts on this strategy.
>
>
>
> By way of background, my client inherited a mobile home in a fairly posh
> area of Santa Barbara. The mobile home had a lien on it, and my client
> fell behind on those payments after becoming unemployed.
>
> The park is one the parks where people have an ownership interest in a
> lot, rather than just renting the space. Nevertheless, the park owners are
> still subject to monthly utilities fees. My client fell behind on those as
> well.
>
> Prior to contacting me the park served my client with a notice to pay rent
> or quit and lien holder filed a notice of sale. For the past three months
> I've been successful at holding the two creditors at bay, and get a deal
> inked to sell the place. However, the day before escrow was to close (last
> Friday) the buyer backed out. I thought we had resolved the issue over the
> weekend, but today I received the notice of cancellation from the real
> estate agent. As it stands now, my client has no job and $0.00 to pay the
> creditors.
>
>
>
> I don't think if the mobile home gets foreclosed on that my client will
> receive anything. However, when we were working on a normal sale it
> looked like my client would receive a substantial ( x > $150,000) amount of
> equity beyond the lien and the back rent.
>
>
>
> The only extra costs my client would incur in a bankruptcy sale would be a
> nominal amount of credit card debt and the trustee fees. However, even
> after that there should be a lot of equity left for my client. It is not
> the best scenario, but I feel like it is preferable to a foreclosure.
>
> My questions are (1) have any of used bankruptcy to strategically sell
> property is a situation like this; (2) you think this is a reasonable
> course of action; (3) do you have any other alternatives.
>
> Keep in mind that my client has no money and no job I can't come up with
> any money to give to the creditors to buy more time.
>
> Thank you in advance for your thoughts.
>
> *Casey B. Nelson*
>
> *Supervising Attorney*
>
> *Foreclosure Recovery Assistance Project*
>
>
>
> *Legal Aid Foundation of Santa Barbara County*
>
> *301 East Canon Perdido Street*
>
> *Santa Barbara, California 93101*
>
> *Tel: 805.963.6754 *
>
> *Fax: 805.963.6756*
> *
www.lafsbc.org*
>
>
>
Giovanni Orantes, Esq.
Certified Bankruptcy Specialist*
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail:
go@gobklaw.com
website:
www.gobklaw.com
*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of Certification
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
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Indeed. A chapter 7 trustee and professionals are likely to exhaust all but a de minimis amount. Chapter 11 is theonly way for yourdebtor to have time to sell but may be prohibitively expensive unless you get someone to loan client money for fees and costswith a lien on the property.
On Sunday, October 20, 2013, Steven B. Lever wrote:
I think it Chapter 7 is the best course of action because you probably could not make a chapter 13 work for the sale.The problem is that it's expensive because the Chapter 7 trustee will eat some of the equity and may even hire attorneys to take some of the surplus estate.
Steven B. LeverSent from my iPhoneOn Oct 19, 2013, at 7:44 PM, "
The post was migrated from Yahoo.