Bankruptcy Law/Chapt 7

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Expert: - 5/13/2011


Question
I am California resident. I filed chapter 7 alone without my spouse last year and included my investment house debt and other lesser debts.  My Chapt 7 was discharged 14 months ago.  I did not affirm for any debt, and chose instead to keep making the house payments.  I am now six months behind in payments and in property taxes. The City is billing me for delinquent taxes but I rather let the bank foreclose and deal with the City. But the bank hasn't issued a notice of default yet.  Will the City  notify the bank to pay the delinquent taxes or will the City  sell the house to get their tax money if the bank doesn't pay?

Answer
Generally, the bank will advance money to pay the property taxes, and then add that amount to what you owe for back payments. I find that banks have become very slow to innitiate foreclosures. Probably they don't want to be responcible for the property while it would be sitting in their inventory.

If you want to wash your hands of the property, call the bank now and see if they would like you to sign it over to them.

Another pitfall for the unwary is regarding homeowner association fees. A person can still get walloped with a big bill for HOA dues even if the property is going to be surrendered. In such an instance, the owner is liable for all HOA fees that come due after the date of the bankruptcy filing, up until the date when the foreclosure sale is completed. The general reader can learn more about this in my Blog article posted at http://0313a5a.netsolhost.com/WordPress/2010/10/27/don%e2%80%99t-get-burned-by-h...

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Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.

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.


Education/Credentials
B.A., J.D.

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.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.

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