Central District Consumer Bankruptcy Attorney's Association

Most of the time, holders of abstracts are not interested in the house. They try to force the sale to get mom to refinance. If she can refinance, then that is the proper remedy.
If a gold digger bought one of the abstracts, you may have to use a bankruptcy remedy. I once ran into a guy with a wierd business model. He spends hours scouring abstract rolls, matching them to homes with equity. He buys the debt, then tries to get the house. He considers it like panning for gold, and when the hours of work produce a nugget, he will not turn back.
There is more than one of these guys and if you have one of them on your clients tail, you had better move quickly.
dennis
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David makes a good point. There is a codebtor stay in a 13, but even if the kids file a 13, a motion for relief from stay will be granted if the kids plan does not cure the default.
The idea that a home loan is a consumer debt, is so crazy (who eats their house?) I often forget to consider things like a 13 in these circumstances.
dennis

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Is the co-debtor stay applicable? Is it a Ch 13? Are the debts "consumer"
debts?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Dennis McGoldrick
Sent: Saturday, April 11, 2009 1:56 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Automatic Stay question
no, h & w get stay and estate gets a stay, but house now belongs to mother,
so house is outside of the estate, no stay.
dennis
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no, h & w get stay and estate gets a stay, but house now belongs to mother, so house is outside of the estate, no stay.
dennis
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Here are the facts:
Husband and wife owned a house. They were sued by 3 separate creditors who obtained judgments and later filed abstracts in 1999.
In 2004, a quiet title action was filed by the wife's mother concerning the real property and won by default taking title to the home subject to the abstracts.
Creditor now is trying to force the sale of the home to collect (the house has equity - its worth $200k with a $50k first. Mother is over 65. The abstracts total approximately $50k).
My question for the group is if the husband and wife file bankruptcy will the automatic stay stop the creditor (only one trying to enforce collection by sale of the property) from trying to sell the home now owned by Mother.

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