If you win, debtor may have more than he can exempt, which would affect liquidation but you can't put a dollar value on the litigation in light of the uncertainty at this point. So I would disclose as unknown.
You can find out the purchase price from the trustee's deed upon sale. As a side note, zillow.com actually reflects foreclosure prices quite quickly but I would confirm with the trustee's deed upon sale.
Sent from my iPad
On Apr 5, 2011, at 11:56 AM, "Mark J. Markus" wrote:
> I don't know what the purchase price was (and honestly not really sure how to find that out) The goal of the lawsuit is to recover title to the property, and if he does so, there's over $200,000 in equity. I don't understand how the value of the litigation, therefore, could be small or nil.
>
> *************************
> 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/)
> ________________________________________________
> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>
> On 4/5/2011 11:51 AM, Giovanni Orantes, Esq. wrote:
>>
>> What was the purchase price? If just a credit-bid, then the value of the litigation may be very small or nil if you lose. If not then ... Anyway, the value of the asset should be disclosed as unknown but I would exempt the entirety of it.
>>
>> Sent from my iPad
>>
>> On Apr 5, 2011, at 10:55 AM, "Mark J. Markus" wrote:
>>
>>>
>>> Yes, there's a lot of equity in the foreclosed property. Sorry I left out that info.
>>>
>>> *************************
>>> 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/)
>>> ________________________________________________
>>> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
>>> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>>>
>>> On 4/5/2011 10:33 AM, Giovanni Orantes, Esq. wrote:
>>>>
>>>> Since foreclosure happened pre petition, isn't debt on the foreclosed property disputed, contingent and unliquidated? As such, it wouldn't be counted toward 109(e) limits - but be sure you override your software on this.
>>>>
>>>> Does the foreclosed property have equity? If not, I dont see how it would be factored into liquidation analysis but if reinstatement payment was made, the litigation may have value which you'd need to exempt.
>>>>
>>>> Attorney has to be employed and compensated like in Ch. 11 though the fee apps and emp apps tend to be very brief.
>>>>
>>>> Sent from my iPad
>>>>
>>>> On Apr 5, 2011, at 10:18 AM, "Mark J. Markus" wrote:
>>>>
>>>>>
>>>>>
>>>>> I need our group's input on this:
>>>>>
>>>>> Debtor had one of his properties foreclosed on prepetition. He has
>>>>> filed suit to recover the property claiming the wrongful foreclosure>>>>> (he had reinstated the loan prior to foreclosure).
>>>>>
>>>>> I'm trying to determine whether this debtor qualifies for Chapter 13>>>>> vs. Chapter 11 and also whether the equity in the foreclosed
>>>>> property would be included in the liquidation analysis under either
>>>>> chapter.
>>>>>
>>>>> If we exclude that property from the mix, then he just barely t
>>>>> qualifies for Chapter 13 given the secured debts on his principal
>>>>> residence. If we must use the secured debts that existed
>>>>> pre-foreclosure, then he would not.
>>>>>
>>>>> Also, if the equity in that property (or, more accurately the value
>>>>> to the estate of the pending lawsuit) is factored in, he'd have to
>>>>> do a 100% repayment plan whereas if not, it could be limited to a
>>>>> lower amount.
>>>>>
>>>>> So my questions are: 1. Does the secured debt from the prepetition
>>>>> foreclosed property get included in the 109(e) calculations at all
>>>>> (it was just one mortgage)?
>>>>> 2. Does the value of that
>>>>> foreclosed property get factored in to the liquidation analysis?
>>>>> 3. Will the attorney working on
>>>>> the litigation for recovering the foreclosed property need
>>>>> bankruptcy court approval to get paid in a Chapter 13? (I know he'd
>>>>> have to be employed and have fees approved in a Chapter 11 case)
>>>>>
>>>>> Thanks,
>>>>>
>>>>> *************************
>>>>> 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/)
>>>>> ________________________________________________
>>>>> NOTICE: This Electronic Message contains information from the law
>>>>> office of Mark J. Markus that may be privileged. The information is
>>>>> intended for the use of the addressee only. If you are not the
>>>>> addressee, note that any disclosure, copy, distribution or use of
>>>>> the contents of this message is prohibited.
>>>>> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
>>>>> imposed by the IRS, we inform you that any U.S. tax advice contained>>>>> in this communication (or in any attachment) is not intended or
>>>>> written to be used, and cannot be used, for the purpose of (i)
>>>>> avoiding penalties under the Internal Revenue Code or (ii)
>>>>> promoting, marketing or recommending to another party any
>>>>> transaction or matter addressed in this communication.
>>>>>
>>>>
>>>
>>
>
>
If you win, debtor may have more than he can exempt, which would affect liquidation but you can't put a dollar value on the litigation in light of the uncertainty at this point. So I would disclose as unknown. You can find out the purchase price from the trustee's deed upon sale. As a side note, zillow.com actually reflects foreclosure prices quite quickly but I would confirm with the trustee's deed upon sale.Sent from my iPadOn Apr 5, 2011, at 11:56 AM, "Mark J. Markus" <
bklawr@yahoo.com> wrote:
I don't know what the purchase price was (and honestly not
really sure how to find that out) The goal of the lawsuit is to
recover title to the property, and if he does so, there's over
$200,000 in equity. I don't understand how the value of the
litigation, therefore, could be small or nil.
*************************
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
The post was migrated from Yahoo.