There is a particular week occupied in news locking in Santa Clara County, California. I came across an interesting article the other day in the San Jose Mercury News. The gist of the article was that many homeowners in the region are failing their mortgages, but are not excluding lenders. They are apparently that housing prices will decrease suddenly if they lock on all these houses, as a glut of supply will enter the relevant market. In addition, these houses likely would remain vacant for a long period of time and deteriorate from lack of maintenance.
Then how affect this persons considering bankruptcy? Especially in the light of two different systems California bankruptcy exemptions, it may be difficult, even for a bankruptcy lawyer.This is why I'm going to break this part parties.Chaque blog topic to examine how this phenomenon affects a different type of Registrant bankruptcy.
For the sake of simplicity, I'll call system that looks closely with the Federal "federal exemptions" and the other "California exemptions".Examinons the first of many differently situated to examine potential effects.
Person 1 - owned a House and has a substantial amount of equity.
This person will be usually elect to use exemptions from California, because they have a higher homestead exemption.Unfortunately, if the person simply saves money that would have been spent on the mortgage and files then bankruptcy, the trustee in bankruptcy may want to use all or almost all the funds to pay creditors.It is possible that money could be used to purchase other assets which would be exempt or to pay off the debts which would not dischargeable by bankruptcy, such as loans for students, alimony for children, etc.Obviously, good planning and the involvement of a bankruptcy lawyer is key to maximizing the potential benefits.
Check back soon for the second part, where I'm going to look at how delayed foreclosure affects the "underwater" with little, owner, or negative equity which contemplates the faillite.John deposit Fox is a bankruptcy lawyer and founder of Fox Cabinet.Le Fox Office is located in San Jose, California and focuses on representing consumers facing bankruptcy due to unmanageable real estate debt.
Article Source: http://EzineArticles.com/?expert=John_C_Fox
This article has been consulted 9 times.Paper presented at: 08 October 2010
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