How is this going to screw me over? **UPDATE**

[Phoenix86]

I'm betting the profits from the sale will also not be evaluated in the bankruptcy court, meaning he washes his debt + keeps the profit to lean on while his credit is in the poo-poo.

 

[Ornery Platypus]

Do you have a lawyer for closing, title search, etc.? If so, did you ask him/her?

 

[bignateyk]

Originally posted by: Ornery Platypus
Do you have a lawyer for closing, title search, etc.? If so, did you ask him/her?

Yeah there is a lawyer. I am going to call him today at some point. I have only talked to my realtor so far.

 

[tk149]

Originally posted by: amdhunter
Good for him. In this economy, every little bit helps.

/taps sarcasm meter
Is this thing working?

 

[tyler811]

One thing I should have also stated in myfirst post up ^^^^ there is if he has already been approved for the mortgage then depending on state if if does not take precedence over federal law (I think all bankruptcy laws are fed) then he gets the new house at a reduced price/payment. When you declare bankruptcy you go into a special pool of interest and loans rates to "help you get back on your feet".

My brother lives in another state and knew this guy that had a damn good credit. He had $300,000 in credit lined up from loans and credit cards. He took all of it as cash and put it in a safety deposit box in someone elses name. Went out paid cash for a home in another person's name and declared bankruptcy. Dude has a new home, $175,000 in the bank is debt free and gets thrown into a program for "special" interest rates.



The credit card companies were so busy with everybody elses bankruptcy that no creditors showed up to his to collect a dime.

My neighbor comtemplated bankruptcy and his lawyer told him the same thing. Credit and loans companies were so busy a year ago that many people walked off scott free. It was a roll of the dice but a roll in your favor.

 

[tyler811]

Originally posted by: TipsyMcStagger
The guy hasn't gotten away with anything, he filed for bankruptcy, he wasn't granted a bankruptcy judgment. Its a temporary thing, its actually a lot harder to get a bankruptcy judgment since the new laws passed in 05, you have to really make almost nothing compared to your debt. Plus they do look into things like where the money went on the sale of the house right before he filed.

Bullshit you can still play the system and win. The only thing really different now is you have to attend some classes on bankruptcy and managing money. The lawyers know the loopholes and use them to their clients advantage.

 

[mugs]

Originally posted by: spidey07

Originally posted by: Old Hippie

He has the house closed and now declares bankruptcy to avoid paying taxes on the sale, fucking over everyone he owes and walks away a rich man.

I'd of never thought of that.

I guess it shows how much larceny, or ignorance, is in my heart.

Not only that but the proceeds won't be counted as assets because he declared before the sale. Pretty smart actually.

How is that going to work? The house was an asset when he declared bankruptcy. The judge is going to know he sold it, and the judge is going to know he has the profit from the sale. You think the judge is just going to wipe out his debts knowing that he has that money? Judges aren't stupid.

 

[tyler811]

Originally posted by: mugs

Originally posted by: spidey07

Originally posted by: Old Hippie

He has the house closed and now declares bankruptcy to avoid paying taxes on the sale, fucking over everyone he owes and walks away a rich man.

I'd of never thought of that.

I guess it shows how much larceny, or ignorance, is in my heart.

Not only that but the proceeds won't be counted as assets because he declared before the sale. Pretty smart actually.

How is that going to work? The house was an asset when he declared bankruptcy. The judge is going to know he sold it, and the judge is going to know he has the profit from the sale. You think the judge is just going to wipe out his debts knowing that he has that money? Judges aren't stupid.

Neither are lawyers Mugs who know the system inside and out and work it to their advantage everyday.

 

[bignateyk]

update in OP

 

[rasczak]

glad things may work out OP.