Legal Question in Bankruptcy in New York

Bankrupcy and house

Our house is currently listed. It will be a short sale. The bank said they won't do anything until there is a buyer. The 2nd mortgage said the same thing. We have other bills that we can't afford due to my SSD. The bank said they'd start foreclosure proceeding by the end of Jan. Should I just pull my home off the market and file chapter 7 before Jan. We make 2 much for legal aid but we can't afford all the money up front. Do attorneys sometimes take payments? Thank you for your help.


Asked on 11/02/08, 7:01 pm

1 Answer from Attorneys
Stephen Starr Starr & Starr, PLLC

Re: Bankrupcy and house

You may want to consider filing chapter 13 bankruptcies, rather than chapter 7. The law does not permit attorneys to take payments over time in chapter 7, but does in chapter 13 (through a court approved chapter 13 plan). Filing the case will stop the foreclosure and buy you time. You may be eligible for various loss mitigation programs to try to save your home. You could also sell the house in chapter 13 with bankruptcy court approval. If the 2nd mortgage is entirely unsecured you may be able to cram it down.

If you need a referral to a bankruptcy attorney in the Rochester, NY area please send an e-mail to my law firm at [email protected]. You may also want to check with the Legal Referral Service of the Rochester Bar Association.

Good luck,

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Answered on 11/14/08, 10:02 am


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