AboutLos Angeles Bankruptcy Lawyer Leon D. Bayer Expertise Personal and small business bankruptcy. Mr. Bayer has successfully handled thousands of bankruptcy cases. You can view his personal web site at:
Publications Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.
Awards and Honors President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000
MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.
Question We closed on chapter 7 about 4 months ago. The second mortgage was discharged because the house value was down. The housing market is increasing and this past week the first mortgage company contacted us about a short sale. Can we actually SELL the house now and PROFIT from it? I am in Virginia.
A "short sale" is by definition a property sale where the selling price is less than the amount owed. All proceeds from the transaction, (other than transfer costs and broker commissions) is normally paid to the lenders. Sometimes they may let you keep a couple thousand dollars to help you move.
A bankruptcy discharge in Chapter 7 does not automatically remove a mortgage lien from property. Your personal liability on the second mortgage may have been discharged, but a mortgage lien itself remains legally attached to property and remains enforceable against the property. You should see an experienced local bankruptcy lawyer right away to determine the legal effects of your discharge.
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