I am filling chapter 7 should I include my house or do short sale. what's better for me?

Question

I am filling chapter 7 should I include my house or do short sale. what's better for me?

Answer 1

Chapter 7 intricacies depend on many variables that include dates, dolalr amounts, history, creditors, business type, income distribution, etc... To give an educated answer, I would (as would any other CPA) need more details. I would recommend speaking with a CPA or a bankruptcy trustee in person and bring all your details with you. They will be able to give you a more precise and educated answer.

Good luck

Answer 2

By all means include your home. Out of hundreds of attempted "short sales" here in Southern California, I see a very small handful actually working.

Lenders are either incompetent, inexperienced or unable to allow short sales. In too many cases, they have sold this loan to other parties who cannot be identified, except through a loan servicing firm without any interest, motivation or financial benefit to see the completed short sale.

I am not sure why you would be filing Chapter 7? Worse case scenario is they obtain a judgment against a home in which you have no equity. This does not hurt you....

You have a right to file Chapter 7 only once every seven years. Use that right sparingly....

Stay in the property for the maximum amount of time you can. It might take 6 months or more to complete  foreclosure. Two more monthsbefore the Unlawful detainer is completed. At the very end you might negotiate a "cash for keys" arrangement. How would your finances be by not paying rent for seven or eight months...?

If you were the victim of lies and deceit by your loan broker this may be justifiable. Otherwise this strategy is subject to your own morality.

Only you can decide which course you want to take but Chapter 7 should be considered only if you owe four or more years income worth of unsecured debt AND unlikely to become further indebted in the near future. In today's economy that is highly doubtful.    

Answer 3

It sounds funny but the bankruptcy judge will answer this question. The judge has to protect you but also has to protect any creditors.  She won't want to see any assets "disappear" just before your bankruptcy.  Even tho you swear that you lost money on the "short sale", the judge wants control over all your assets.  The judge will sign the deed when your house is sold./