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Guest

My home is in foreclosure and we just had some wind damage done to it. We are filing BK so do we call the insurance company and make a claim or just wait to see what happens with everything? By the way we just got the paperwork on the foreclosure

sara

Hi Newbie,

Welcome to the forums.

What type of bankruptcy are you filing? Seems like chapter 7 but it's just a guess. If it's chapter 7, your assets will be sold off to pay off the debt as much as possible. So, in case you claim the money, you won't be able to repay the debt to the extent you can if you don't claim it.

There are states which may require anyone to pay off the money received as insurance to the creditors if the debtor receives the money within a period of 180 days of filing the bankruptcy. In which state do you live? The bankruptcy laws vary from one state to another.

Take Care

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Newbie,

If you file Bankruptcy 7 then you may save your house from foreclosure but in that case you will have be approved for filing BK and if you are approved all your assets will be sold except some exempted assets to pay off your creditor.

I think you should consult with a BK attorney ASAP before filing the BK.

Best of luck.
Larry

enriko · Joined: 05 Mar 2008 Posts: 67 0.07 Dollars($)

talk about it with BK attorney before filing BK:)

cowlovinmom · Joined: 14 Mar 2008 Posts: 3 2.22 Dollars($)

Sorry to sound like a broken record, but for this I would consult a bankruptcy attorney.
Best,
brenda

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Guest

Well one can always contact a bankruptcy attorney but consulting in a forum makes sense as one comes across various opinions - the pros and cons of every aspect and then gets to decide upon which is the right way to go.

Guest

The bank said they would auction my house so I moved out and now they have postponed the auction 4 times. I have a 2nd also so I guess deed in lieu option out. What happens from here? How do I walk away, seeing that I in reality have?

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Robinson,

I think the property is in foreclosure. So after foreclosure the first mortgage lender is entitled to get the sell proceeds first. After the first lender is paid off then the second will get his money but if he is not paid of with the sell proceeds then he can attach lien on your other properties.

Best of luck.
Larry

securityonefinancial · Joined: 19 Jun 2008 Posts: 5 10.83 Dollars($)

Because bankruptcy laws very from state to state, I would advise you to consult a bankruptcy attorney.

I'm the mortgage consultant of Security One Financial, and I have seen a greater share of foreclosures.

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