Expert: Mark J. Markus- California Bankruptcy Attorney - 5/25/2011

Question
I am in California. I have been trying to modify my main home loan for about two years. I have submitted numerous documents to the banks only to receive additional documents requests. Now I am planning to file a Chap 7 for two other properties and I wan't to take advantage of including the main home debt in Chap 7 and "surrender" the property together with the other home debts.

If prior to or after the my Chap 7 discharge the bank modification comes through favorably, I will be content since the payments should be lower than before.  At the same time I will have bankruptcy protection just in case the modification is denied or the lender loan modification is against my interests. Do you think the Chap 7 trustee will allow my plan.

Answer
As long as there is no equity in the property in question, the Trustee is not going to take any interest in it.  You need to make sure you have a qualified attorney handle your case because how you "present" the case and list your intent on the mortgage debts could affect your eligibility for Chapter 7.  It may not be an issue in your case at all, but I don't have enough facts to make that determination.

Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/