Posted on: 21st Apr, 2010 11:37 am
We have filed Chpt 7 and stopped our foreclosure. We owe $230k on 2nd & 3rd to WF and wonder if we can settle that while still in BK. Does the Trustee in the BK allow you to take 401k distribution and a gift from a friend to settle the debt, or do they see that as preference and take the cash for CC?
Hi Kathy,
As you've already filed for bankruptcy, the lender will not come into any kind of settlement with you. This is because of the fact that the court has issued an automatic stay on your creditors. Once your bankruptcy is discharged and you reaffirm the loan with your lender, he may be ready for some kind of settlement with you.
As you've already filed for bankruptcy, the lender will not come into any kind of settlement with you. This is because of the fact that the court has issued an automatic stay on your creditors. Once your bankruptcy is discharged and you reaffirm the loan with your lender, he may be ready for some kind of settlement with you.