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Creditors and Bankruptcy/Timing of BK
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Question
Hi Regan,
It would not allow me to submit a follow-up, so sending this as a new question. Is there a timing issue of when the BK should be filed? For example, my father's BK attorney just filed after the foreclosure (3 days after). However, is there a timing issue where he should wait until the lender actually seeks a deficieny judgment and then file BK? Or can he just file after the foreclosure and this should be taken cared of in the BK? I understand the mortgage loan, a secured debt - is now an unsecured debt. Thank you again!! You have helped me tremendously!
The timing shouldn't matter other than your attorney may need to file an amended petition. I am almost certain in all states (I know in my state) if the property is included in the BK, then all subsequent action is also included - for chapter 7 only. This means if you are giving up the house, the lender cannot sue at a later date for a shortfall. Lender gets the house, you are forgiven all debt regardless of timing IF it is listing in the BK docs.
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA - University of Minnesota
Past/Present Clients
(private)
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