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Foreclosure the day after tomorrow

By Cathy Moran

The email said: ” We saw you two months ago about bankruptcy.  The foreclosure is Tuesday.  Can you help?”

I wanted to reply:  “Where have you been in the past two months?  What were you thinking to wait til now to start filing bankruptcy?”

Instead I said: “Bring information, money and be here in two hours.”   But what are people thinking to wait til the last minute?

If, as so many clients say, saving the house is the most important thing, why gamble by waiting to within hours of the actual foreclosure sale to move to file bankruptcy?  Why aren’t your actions (to save the house) consistent with your statements (about the importance of the house)?

Bankruptcy lawyers, especially experienced ones, are few in number and generally overwhelmed with work.  Don’t count on finding available legal help at the last minute.

Here endeth the rant.

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  • What Happens To Cash In Bankruptcy?What Happens To Cash In Bankruptcy?
  • Personal Assets Can Be At Risk For Your Business DebtsPersonal Assets Can Be At Risk For Your Business Debts
  • Tax Fallout from Foreclosure & Loan ModificationTax Fallout from Foreclosure & Loan Modification

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About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

Everyone gets $1M + bankruptcy exemption

Bankruptcy exemptions vary from state to state, but everyone gets an exemption of ~$1.75 M for money in an IRA. It's part of the Bankruptcy Code (section 522(n)) that applies to all filers, wherever they live. The exemption covers both classic, before-tax IRA's and Roth IRA's that are funded with after-tax dollars. … Read more

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