My dad will be filing Bankruptcy under Chapter [whatever individuals file]. I am looking at getting him into an apartment, since his house will default to the bank. However, I’m going to have to time this properly, because he’ll need to save up for a deposit and all that.
From the day he signs on the dotted line until the day the Sheriff shows up to evict him, how long does he have? I’m guessing about 90 days…
My chap 11 was filed in mid-May; discharge was dated late Aug.
This will vary immensely from Court to Court, and complexity - is anyone challenges it, all bets are off.
Talk to a LOCAL lawyer specializing in BANKRUPTCY. These are not the cream of the crop, as a rule, and will be glad to spend 5 minutes with you on the chance you will remember him/her when it comes time to file.
In my state, bankruptcy forestalls all foreclosures temporarily.
It really depends on a number of things…which chapter he files under (likely 7 if he qualifies under the means test, otherwise a 13 which works entirely differently), what area of the country he files in, what negotiations take place with the creditor, etc.
There are non-bankruptcy options to prevent a foreclosure, and options within bankruptcy to save the house or delay the process if it isn’t possible to save the house.
Your dad needs to talk with a bankruptcy lawyer in your jurisdiction, and may also wish to speak to someone knowledgeable about foreclosure prevention, which may or may not be the same person.
Sorry - it was Chap 7.
I may have destroyed my credit (I got a letter from my bank saying TransUnion no longer has enough data to issue a FICO), but i DID get rid of a Tax Lien - let’s see who else can duck a tax lien - those and Student Loans are specifically excluded from discharge under Bankruptcy.
(quirk of how personal liens work in CA).
In my case, I was allowed to keep $175,000 in personal assets (including home equity).
50 years ago, I heard that Texas bankruptcy allowed a man to keep his horse - subsequentilly interpreted as “automobile”.
The trick was to liquidate all assets, buy a classic car with all the money, establish Texas residency, and promptly file chap 7.
Can’t believe that loophole still exists.
And: the bst defense is still a good offense: sue the hell out of anybody claiming a right to your real eatate - did you use a sleazy hard-money lender? They often trip the “Predatory Lending” line.
Bankruptcy proceedings often depend more on the debtor than anything else. I work in accounting and am often asked to help petitioners put together their tax returns and other financial information. I can’t count the number of people who drag their feet for months on that. They keep asking the attorney “When will this be over?” and he has to keep responding “I can’t even start it until all the paperwork is in order!”
Three months is a reasonable timeline for what I’ve seen in Washington, but you do need to get individualized advice for your local laws.
Just FYI, IRS tax debts/liens can be discharged in bankruptcy if the assessment is at least three years old. (The assessment date would be after you file the return, though, which is one thing that trips up people who file a lot of late returns all at once.) For other kinds of tax debts, it wouldn’t surprise me if there were similar rules.
The foreclosure itself might take quite a while depending on your state.
My in-laws quit paying their mortgage in late 2012. Their bankruptcy hearing was some time in 2013. The bank didn’t actually take the case to court until March or April of this year. The foreclosure was finalized in June. No way of knowing how long it would have been before they were actually evicted; we already had things in place for them to have a place to move.
So - I assume your father has quit paying the mortgage; he should save every penny of that. Though the bankruptcy court might make him turn his savings over to satisfy debts, I assume that would stop being an issue after the hearing and he could continue saving up until the foreclosure is actually finalized.
Of course, as a friend found recently, sometimes the banks will proceed faster than you expect; they thought they would have several more months than they wound up having to move. So be prepared to act on somewhat short notice.