Author Topic: Need a Massachusetts Case Law or US Supreme Court case for debt collection!  (Read 5488 times)

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Clydesmom66

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I'm thinking about BK but my current situation is like this, I'm currently in the process of buying a house and the closing date is the end of this month.  [/quote

SOMETHING does not add up.  I have yet to see a mortgage underwriter that will close on a house with charge offs on a credit report let alone active lawsuits for two cards in debt of that amount.  My gut is telling me that you will get to the end of the month and they will deny closing.  Especially since the credit union can put a lien on the house.  Underwriters don't want ANYTHING on a credit report that would affect their standing on the mortgage.

Would my best use case be to go for BK after the closing of the house?  What's the best way to handle this?  Chapter 13 BK?

You need to speak to a BK attorney.  That is a VERY specific area of law and your debt attorney does not practice in that area he may not know the exact correct answer.  You could find yourself being charged with fraud in the process because the application for the mortgage specifically asks about outstanding debts and pending suits.  Failure to disclose could be a huge problem.  You are being sued for $75k that you cannot pay and creating MORE debt right now is not the best idea.  BK rules also prohibit major purchases like that KNOWING you are going to file.  You might not even be eligible.

I just don't want anything happening to the newly purchased house.  My lawyer did say I can do a homestead declaration so they can't touch the house.

You may not even be purchasing. Have you told your mortgage broker about this suit?
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.