bankruptcy questions

[Dave Grosse]

I just got off the phone with a guy that got one of my letters. I've always had trouble understanding the effects of ch. 13 and ch 7, and especially when it comes to possibly doing a short sale for them and whey they would want to do the sale.

This guy is set on filing ch.7, which to my understanding is supposed to clear you from all liabilities with a few exceptions. I didn't have a good reason to give him why he should do a short sale with me first and then file his BK to take care of the rest of his debts; of course I told him he needs to ask his lawyer what the implications are to help him decide.

I know too that dealing with folks planning on filing BK may not be favorable, but on occasions such as this, it could be a good sized deal ($40 K+) if I have an answer or at least a solid reason for him to go back to his attorney with, and eventually get the deal.

[Bill Gulley]

Hi, anyone who has filed (or even contemplating) bankruptcy can not dispose of any asset until the bankruptcy court approves the disposal. Clearance for a short sale would probably be approved if they are underwater. The court needs to know if there is any equity available for other creditors beyond any exemptions. If someone is starting a foreclosure, stay clear of them, inticing them to pay something off could land you in trouble! When the bankruptcy is discharged, go get'em! Bill