Covina, CA asked in Bankruptcy for California

Q: Preservation of interest

My lender for my home can not prove they own my loan. so i was told to file bankrupcy then an advisary or a quit title. another person has told me to file preservation of interest instead. any input as to what you know about this would help. thank you.

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1 Lawyer Answer
Ute Ferdig
Ute Ferdig
  • Newcastle, CA
  • Licensed in California

A: Nobody can advise you on what you can and should do without the benefit of all the facts. Bankruptcy law and filing adversary proceedings is not easy and should only be done by an experienced attorney. What you can and cannot do will depend on which type of bankruptcy case you are contemplating (chapter 7, chapter 13...). It will also depend on whether the loan you are challenging is secured by your primary residence or whether it's an investment property. The "show me the note" strategy has not been particularly successful in California and it's doubtful that you would be able to get your house free and clear. There is very little persuasive legal authority (i.e. appellate court decisions) in this area of law as the problems caused by faulty loan securitization are relatively recent and it takes a while for cases to make it through the judicial system, which makes it difficult to predict the chances of success of a case involving the challenge of a loan. Unfortunately, there are scammers out there who will make unsubtantiated claims of success and all they do is add injury to insult for distressed home owners who pay them money in hopes of saving their home. I know an attorney in Sacramento who has filed adversary proceedings in bankruptcy cases challenging the validity of loans and she is available to provide consultations (she charges $250 for a 1-hour consultation). You could also become a member of Prepaid Legal. For only $26/month, you would be able to ask questions on unlimited number of issues in all areas of the law, including bankruptcy. Answers are provided by experienced attorneys. You can go to to get more information about the membership benefits. These are just a few low cost ideas for you to get quality and affordable legal advice needed to assess your situation based on your particular set of circumstances. Unfortunately, there is no 1 size fits all answer to your question.

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