Methner Law

Question: I filed chapter 13 bankruptcy but am surrendering the house, how long can I stay in the house? Answer: Regardless of the chapter 13 bankruptcy your mortgage lender will need to go through the foreclosure process to take possession of the house. While a chapter 13 bankruptcy is pending, the lender cannot initiate or [...]

Is it possible to refinance a mortgage while in chapter 13 bankruptcy? Yes! Is it common or easy to do? No! Chapter 13 bankruptcies are payment plans whereby an individual pays their left over income (after paying all necessary expenses) to pay back a portion of her debt. This means that the client usually has [...]

A bankruptcy discharge is actually a permanent injunction against anyone from taking any action to collect a discharged debt. Why is this distinction important? When we speak in layman’s terms about bankruptcy, we often talk of bankruptcy “eliminating” debt. However, technically speaking, the debt is not eliminated. The “eliminated” moniker is apt for unsecured debt [...]

The Federal Trade Commission, on the heels of a damning investigation by the Government Account Office, has finally issued rules to regulate one of the shadiest industries, Debt Settlement Companies. Debt settlement firms have, for many years, been misleading consumers about the ability to get out of debt and avoid bankruptcy and earning millions of [...]

Question: I am a manager of a Limited Liability Company (LLC). The LLC owned an apartment complex which was sold last year. I am now informed that there are some vendors with outstanding debt. A vendor sued the LLC, and the court awarded a judgment. Question 1: Since the LLC has no assets, can I [...]

Question: Looking for the best option now–First let me say thank you for your time. A little background first. I filed a no asset, Chapter 7 Bankruptcy in June. But, I have $13,000 in mortgage arrears on my home that I WANT TO KEEP. However, I have been unemployed for 8 months. After filing (but [...]

Question: Can my car be repossessed before my Chapter 7 bankruptcy is over? We received a letter from our car lender stating that any payments are voluntary. Does this mean we do not have to make a car payment until our bankruptcy is over? (We plan on reaffirming our car in the bankruptcy). Answer: The [...]

Question: We surrendered our home in Bankruptcy. The mortgage company has gone to court to request the home back (Notice of hearing, motion for relief from automatic stay). When the court gives the mortgage company the home back, our attorney advised us we remain in the home until the home is sold. This scenario doesn’t [...]

I am often asked to explain attorney’s fees and the costs associated with bankruptcy; one way to view bankruptcy is as an investment and look at the Return on Investment (ROI). For example, for an investment of $2,700 in attorney fees in bankruptcy to discharge $50,000 in debt, the ROI is 1,752% in as little [...]

Question: We recently filed chapter 7 bankruptcy. We surrendered our home as part of the bankruptcy but still live in the home. We have not received a notice of default as of yet. We are under contract with a real estate agent who wants to short sell our home. If we short sell our home, [...]