High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
Dealing with the financially distressed seller
1. Dealing With The Financially
Distressed Seller
David M. Gormley, Esq.
Andrews, Bongar, Starkey & Clagett
SouthernMarylandLaw.com
“Answers to Life’s Legal Questions”
• The other Chapters
‚ Chapter 12 Family Farmer & Fisherman
‚ Chapter 9 Municipality
‚ Chapter 15 Cross-border Cases
• Chapter 7 Liquidation
• Chapter 13 Adjustment of Debts
• Chapter 11 Reorganization
The Different Chapters
Bankruptcy
2. • Numbers
• $$$$
• The Short Sale - the motivated seller
The Financially Distressed Seller
• Announcing the Bottom
• The Estate & the Trustee
• The Automatic Stay
• Discharge and Fresh Start
• Exemptions
• 341 meeting
• Priority of Creditors
• Confirmation
• Discharge
Defining Terms
3. • Eligibility
‚ Individual, partnership, corporation or other entity
‚ Filing fee $299
‚ No prior discharge in last 8 years
‚ Income limits
• Presumption of Abuse
• Means test
• The Process
‚ The pre filing credit counseling class
‚ The petition
‚ The post petition financial management class
‚ Trustee documents
‚ The 341 meeting
‚ The discharge
Chapter 7
Common Maryland Exemptions
Type of Exemption Description $ Amount
Pension ERISA-qualified benefits Unlimited
Household Goods Appliances, furnishings, household $1,000
and Furnishings goods, books, pets and clothing
Tools of Trade Tools, instruments, books, clothing $5,000
and appliances
Real or Personal Property Any personal property $5,000
Property of Any Kind Cash or property of any kind $6,000
Homestead (cases field after Owner Occupied Real Property $20,200
10/1/10)
Maryland Median Incomes
Family of 1 -$55,543 2 -$73,947 3 -$84,952 4 -$103,719 5 -$110,619
4. Virginia Exemptions
Homestead -$5,000 an additional $500 in value for each dependent.
Additional property for a disabled veteran, $2,000. $5,000*
Homestead allowance for surviving spouse $15,000
Wearing Apparel $1,000
Wedding and engagement rings, family portraits and heirlooms $5,000
Household furniture $5,000
Exempt property of decedent $15,000
Farmer's equipment $4,000
Motor vehicle $2,000
Court award or settlement proceeds from personal injury or wrongful death actions
generally are also exempt.
Tools of trade $10,000
Florida Exemptions
Homestead No limit
Certain personal property is allowed by law or by the State Constitution to be exempt
from levy and sale, the debtor may claim such personal property to be exempt from
sale by making, within 15 days after the date of the levy, an inventory of his or her
personal property.
Motor vehicle $1,000
Chapter 13
• Individual or Unincorporated business
• Secured debt less than $1,081,400
• Unsecured debt less than $360,475
• Filing fee $274
‚ The petition and the plan
‚ Pre and post filing classes
‚ The 341 meeting
‚ The Confirmation hearing
‚
The Process
Eligibility
5. The Automatic Stay
36 - 60 months to Cure Arrears
Sufficiency of Plan
Plan compared to liquidation
Voiding an Unsecured Second Mortgage
Chapter 13 Plan
Saving a house from foreclosure
• Lien holder acceptance
‚ Easier than ever?
‚ Avoid foreclosure
• Phantom income
‚ Discharges in 2007 through 2012 of up to $2 million of
original mortgage debt on taxpayer’s qualified principal
residence is excluded from taxpayers gross income.
‚ “original mortgage”
‚ Insolvency
• Robert W. Askey, CPA, CFE Phone: 301-934-5780
Robert@AAACPA.com
What’s Changed
The Short Sale
6. • The automatic stay
• The Plan
• Nominal plan payment
• Step plan
• Contract of Sale is obtained
• 1. Payoff of Ch. 13 plan from Trustee
• 2. A Motion to Allow the Sale attaching loan approval is filed
with the Court
• 3. Trustee Consent to Motion
• 4. Settlement can be scheduled
• 5. At Settlement - all net proceeds to the Ch. 13 Trustee for
distribution
• 6. Signed HUD-1 from settlement to be sent to Trustee w/in
90 days or Sale can be invalidated.
How to Buy Time to Complete the Sale
The Chapter 13 Sale Plan
• Give all the Options
‚ CYA
‚ The Sale Plan
‚ The happy client
• Negotiation
‚ Accept short sale or else.....
‚ The automatic stay
Why should seller consider bankruptcy?
Short Sale vs. Bankruptcy
7. • Is the House only ½ of the problem?
• Chapter 13
‚ Automatic Stay
‚ 36 - 60 moths to cure arrears
‚ Shortage treated as unsecured debt instead of income
‚ Court Approval vs. Lien Holder Acceptance
• Chapter 7
‚ Debt is discharged - no phantom income
‚ Wipes out all debts
The Advantages of Bankruptcy
• Avoid Bankruptcy
‚ Avoid Court time lines
‚ Avoid 3 to 5 year plan
• Paying off other debts
• Start bouncing back
‚ Sold and Done
The Advantages of the Short Sale
• Sold and done
