thanks Mike, and you're right, the whole thing is about strategy. I didn't become involved in this until the house was foreclosed and an ejectment action was filed -the foreclosure was after her bankruptcy case got dismissed.
Mike H. wrote:
My opinion with regard to BK is backed by experience. Never file Ch7 before a judgment is entered. Fight it out in state court.
If there was obvious fraud in the state court judgment, file ch 7 and list
the judgment as unsecured and disputed. List the property as homesteaded
with either the state exemption or the federal exemption if your state has
no hx exemption.
In 7 out of 8 cases I prepared, the pretender lender never filed a motion
to lift the stay and never appeared at the trustee meeting. In the one case
where a motion to lift the stay was filed, it was denied. Out of the 8 cases,
so far, 5 received a discharge and got to keep the property because in Fl.
the HX is unlimited. ( That won't be true in most states but at least one
should get some cash back when the property gets sold by the Trustee.)
One could conceivably use that cash to buy another foreclosure, maybe
even the same house one just lost.
In studying Pacer and looking at what most attorneys do, I'd say their
biggest mistake is filing Ch7 pre-judgment. This always triggers a motion to
lift the stay, it gets granted and the homeowner loses the house. In my
humble opinion, it is malpractice and shows that the attorney has no clue
as to what he is doing.