Q: We own the mortgage on a home in TN. The owner has filed for chapter7. his exemption is $25,000 and his equity is less
what do we have to do to protect ourselves?
A:
You can do one of at least two things:
1. You can foreclose, probably not the bet move
2. You can invite the debtor to enter into a reaffirmation agreement which will allow the obligation to continue on uninterrupted, which is preferred
You need to review the bankrtupcy petition to see if the debtor decides that he wants to keep the house or abandon it. There is a place in the petition where he indicates that intent.
You need the help of a bankruptcy lawyer in either event although the lawyer does not necessarily have to be in Tennessee--one right here in Florida would be great.
Please feel free to contact a local Bankruptcy lawyer for advice and counsel. Believe me, this is not DIY
Good Luck
d
A: Hire a bankruptcy attorney to represent you and determine whether the debtor wants to keep the house and pay the mortgage or surrender the house. Once determined, you will k ow how to proceed.
A: One cautionary note: if you seek to foreclose the Tennessee mortgage you should get an attorney licensed in that state. And before you foreclose you will probably need relief from the automatic stay in bankruptcy.
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