Legal Question in Bankruptcy in Florida

Hi,

I am currently in Chapter 7 Bankruptcy, I was unable to afford an attorney's services, so I had a paralegal file the paperwork for me without legal representation. I have just had the 341 meeting 2 weeks ago, and I am awaiting further response.

The deadline date for creditors to contest is September 21, so I am hoping to have a dismissal shortly thereafter given no problems.

In my case I listed that I wanted to surrender my primary home, but I don't know what the ususal procedure is to actually surrender it?

I just received a letter from the mortgage company's attorney asking me to sign a "motion for relief from stay" so they can proceed with foreclosure and in return not file a judgement against me.

I have no problem leaving the property via the bankruptcy, my question is how much time would I have in the home if I signed vs if I didn't sign?

Also what would be consequences or results if I didn't sign? I ask because I don't want there to be listed a foreclosure and bankruptcy on my credit, just the bankruptcy. I am assuming if I didn't sign and just let the bankruptcy run its course then giving up the property would just be listed within the bankruptcy, right?

Or is it listed as a foreclosure either way?

Basically I just need advice on the pros and cons of signing the "motion for relief..." .

Thank you.


Asked on 8/03/09, 11:50 am

1 Answer from Attorneys
Brent Rose The Orsini & Rose Law Firm

The motion for relief from stay allows the foreclosure attorney to proceed with getting you out of the house. Right now, the foreclosure can't proceed in state court because it's "stayed" (blocked) by the bankruptcy court. The foreclosure lawyer will be able to unblock (get stay relief) from the bankruptcy court, but you have no incentive to help the process. There is no reason you should agree to "stay relief." The longer you delay, the more time you'll get to stay in the house for free.

The mortgage company is not allowed to put "foreclosure" on your credit once you file bankruptcy, though I've seen it happen. If it does happen, you should immediately speak to a bankruptcy lawyer.

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Answered on 8/03/09, 6:14 pm


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