Legal Question in Bankruptcy in Pennsylvania

DO NOT DO NOT DO NOT CHANGE THE TITLE OF YOUR HOUSE OR CAR

See a bankruptcy attorney asap

DID YOU HEAR ME SAY DO NOT CHANGE THE TITLE TO ANYTHING!!!!!!!!

If the home is mortgaged, any transfer to someone in your family would violate the due on sale clause in your mortgage documents and allow the mortgage company to demand the whole amount due. However, you could sell the property to a family member as long as it is for fair market value. Iif you do this within one year of filing bankruptcy, the trustee is going to scrutinize the transaction so that is why it has to be for fair market value or close to it. If the trustee thinks there is fraud, he/she will deny the petition. Either that, or file bankruptcy one year or more after the sale of your home.

If you give the home outright to a family member, these transfers likewise are subject to reviiew by the trustee and as I said an outright transfer would not only violate the due on sale clause but would constitute a fraud on the bankruptcy court and they will deny your petition.

A power of attroney will not assist you in trying to save the home. A power of attorney just allows someone else to handle your property in the same way that you could do so. Putting your son as beneficiary has no effect either if you are still alive.

I don't know any "loopholes." It sounds like you are attempting to do something unlawful if that is what you are seeking.

In general, there are 2 ways to go to keep your house. There is a chapter 7 liquidation and a chapter 13 restructure of your debts. Under a chapter 7, if you want to keep your house, then you need to find a way to keep paying for it. If you are behind, you need to get current within 30 days of filing your petition.

If you have a lot of property or are behind on your mortgage and still want to save your home, then you can do a chapter 13. Under a chapter 13, you will file a plan with the court. The chapter 13 will allow you to get caught up by the amount you are behind over a 3 to 5 year period. Depending on your income, your other debts may have to be repaid as well.

However, I am not a bankruptcy attorney. You should get a consult with a bankruptcy attorney in PA. Some attorneys give free consults. The bankruptcy attorney needs to reivew your assets and debts and will be better able to advise you.

If bankruptcy will not work, you say you are "over your head" with the mortgage payments. Maybe then its time to consider getting out from your home if you cannot afford it. Before you make this drastic conclusion, have you explored the alternatives? Talk with a housing counselor. Find an agency near you at www.hud.gov or www.nfcc.org. There is also some programs (called HAMP) where it may be possible to do a mortgage modification. I would ask the counselor about this.

Also, would you be able to afford your mortgage if you did not need to worry about the credit cards? In that case, I would focus on the mortage and let the credit cards go into default for now. Why are you in this situation>? Did you lose a job? Have unforeseen expenses?

Depending on the answer, this may help you decide what to do. If this is a temporary blip, then let the credit cards go delinquent for now. If you get a job later, then you can start to resolve the credit card debt at that time.

There are alternatives to bankruptcy, ranging from debt consolidation to debt settlement. Speak to the credit counselor about these options too. If a debt management plan will not work, perhaps debt settlement will. Your debts really are not all that bad - I have clients with much more signicant debt than you do, but it does depend on your monthly income and why you are in this predicament.

If you would like to speak in confidence about your situation, I give free email consults. Please contact me at [email protected] if you are interested.

There are ways to keep your house. Most cases that we handle our client do not have to sell any property and their unsecured debt is wiped out. If you are behind on your mortgage payments, there is a bankruptcy that would let you keep it and catch up.

My firm has helped over 5,000 client discharge their debt and start over.

Please call me for a free consult.

Ellis Klein

215-639-5297