Bankruptcy Mastery

Becoming a better bankruptcy lawyer

  • Home
  • About Cathy
  • Contact Cathy
  • Articles by Topic
    • Attorneys fees
    • Bankruptcy Practice
    • Before filing
    • Business bankruptcy
    • Cases new & significant
    • Counseling clients
    • Family Law in Bankruptcy
    • Means test
    • Opinionated
    • Real property
    • Rule 3002.1
    • Tax
  • Table of Contents
  • Start Here

Beyond The Client’s Preconceptions

By Cathy Moran, Esq. Filed Under: Before filing

The clients were in my office considering bankruptcy because of nasty litigation approaching trial.  While they would undoubtedly win, the expense was enormous. 

Even victory in court would ruin them.

As we talked about their financial situation and their eligibility for bankruptcy, it came out that there were two liens on their house . On their numbers, perhaps the second lien was totally unsecured. 

I sent them out to get a broker’s opinion of value. Turns out the house is worth less than they thought, the $43K second loan can be stripped off the house and discharged, but only in a Chapter 13.

If they had gone with the Chapter 7 case they came to explore, they would have missed out on lien stripping.

For the clients, that opportunity turned the decision to file bankruptcy from a sour concession of economic defeat to a more positive chance to end the litigation and improve their chances of keeping their home.

More from my site

  • Know the Rules of Debt, Divorce & DischargeKnow the Rules of Debt, Divorce & Discharge
  • How To Learn The Truth Behind The AssetHow To Learn The Truth Behind The Asset
  • Cautionary Tale re Bankruptcy, Attorneys and NoticeCautionary Tale re Bankruptcy, Attorneys and Notice
  • Learn the Bankruptcy Lingo: Pots & PercentagesLearn the Bankruptcy Lingo: Pots & Percentages
  • Near Sighted Leading the BlindNear Sighted Leading the Blind
  • Wrestling With The Means TestWrestling With The Means Test

Filed Under: Before filing Tagged With: client choice, initial meeting

Comments

  1. Victoria Li says

    February 3, 2010 at 10:55 pm

    Is zillow.com’s figure countable by the court?

    • Cathy Moran, Esq. says

      February 12, 2010 at 3:09 pm

      I don’t find it very credible: how would you cross examine such evidence? We don’t know how current its data base is or how it manipulates information. I use it as a reality check but nothing more. If it’s important, get a real live person in the business to go inspect the property.

[footer_backtotop]

Copyright © 2023 ·Prose · Genesis Framework by StudioPress · WordPress

Theme customization by Rowboat Media LLC