Thanks for the reply, John. The date has come and gone for the meeting of the creditors, though. My brother, an attorney in NYS, put me in touch with a friend of his who is a BK attorney up there. He told me not to bother to go to the meeting. I couldn’t have gone myself, anyway, since a Trust that has my Roth IRA as beneficiary actually owns the mobile home. Long story short, that trust has a local Trustee and I don’t think he bought into doing this with the idea he would have to go to court! (Who would have thought?)
I am now just waiting on correspondence from the court as to where we stand. I did talk with a local attorney before bankruptcy papers were given to me about repossessing this home and he told me it would require a retainer of $2,500 plus other costs. Quite frankly, the note is only about $4,000 now so I can’t justify putting out that much money! Although I don’t want a loss from my Roth, if it would cost me an equal amount to the note it doesn’t make sense to do.
As we have found out, bankruptcy is very slow. We have a tenant in our own park going BK, although hers is a different type. We got notification in November and it is not even going before the judge until February. It is in a different state, but BK is federal, I think, so that shouldn’t make a difference.
If we can get the home back without putting out all that money, we will. Again, thanks for your response. I guess at this point it is just a waiting game. We have talked with the Park Manager and suggested we work together, but that remains to be seen, too.
We have a lady who has filed bankruptcy “no asset”. She has not paid on her mobile home note since October and has not paid the park she is in since then, either. The trust that bought the note has received notice from the court of a meeting of creditors.
Since our IRA trust has a valid lien on the home title, and is in possesion of it, does it automatically get the home back? I doubt anyone would consider it worth more than the note amount, thus the no asset filing.
Do we have to appear at this meeting? If not, do we need to put something in writing to the bankruptcy trustee? How long does it take for the trust to obtain possession?
Any help would be great. I don’t think it matters since bankruptcy is federal, but we are in Florida. There is no homestead on the property (no Real Estate owned.)
Posted by John Merchant on January 21, 2007 at 15:07:54:
Since this happens lots to car dealers and their lenders, you could get quick info from their credit depts about what they do when BK is filed.
I’d think, without briefing the exact question, that a “Motion to Lift the Stay”* and let you repo the car is going to be required…and unless you’re willing to tackle that “pro se” (for yourself)a lawyer will have to do that for you.
As to the meeting of the creditors, most in my experience have had zero creditors even show up…but if I were a creditor I’d sure go to protect myself and let everybody know I wanted to be able to repo that MH.
As to taking the MH out of BK Court’s Assets** and letting you have it without complaint from the other creditors, I’d advise you to build a little file to prove that there’s no equity in that MH and it’d be worthless for anybody else to get it.
*This is what a creditor holding a Deed of Trust does in order to proceed to foreclose upon its DT and the BK courts routinely allow those MTLSs and the subsequent foreclosures.
**When the BK was filed naming the MH, it became an asset of the court and it’s the court’s property to dispose of as the judge sees fit.