• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

$10,000 Question

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.


Junior Member
What is the name of your state? Nevada

About 1 ½ years ago my husband and I were forced to file CHT.13 to save our house.
Waiting till the last minute, exhausting every other possible avenue, we were literally within hours of our house being sold on the auction block. We filed a homestead on the property.
We had to take the only lawyer available at such short notice and he simply has turned out to be not much of a fighter. I say this only to explain why I am here asking questions rather than asking him.
The facts of this case are,
Bankruptcy totals approved approx. 30,000, altogether approx. 42,000 but many creditors were unresponsive.
Secured debt, First mortgage=14,000, Second mortgage=3,600, Auto=1,250, Lawyer=2,100
The remaining balance and tax returns to be applied toward unsecured debt.

After filing, our Mortgage Co. has not accepted any authority from the court order protecting us, almost denying they even exist. They repeatedly sent custodians out to lock us out of our home. Refusing to accept payments sent, sending them back with a note attached stating ‘not reflected as total amount owed’. It was almost a year before we could finally force them to accept payment, by this time totaling approx. $13,000 Which they then applied to the block of payments and fees we had filed on from the previous year, effectively absorbing any principle we may have had, had they applied them to current bill instead of that which we had filed on. They have also filed with the credit agencies non-payment histories for the entire year that they refused payment. In the judges ruling that stated they would accept payment as so ordered they were also to fix these credit reports, which it is no surprise they have not done.
In June of this year we petitioned for early release by way of the sell of our home.
It was granted with the condition of adding to the total owed to the BK court (now paid down to $20,911) the estimated tax returns had the plan went full term.
By this time the first mortgage had received approx. $4,000 from the trustee, and upon selling our home the trustee received the remaining balance of $20,911 + estimated tax returns. The mortgage was paid in full thru escrow with the exception of the $10,000 still held and waiting to be dispersed by the BK court upon judge’s orders on court date this September 21st. The only way the first mortgage would accept this closure was if escrow was to hold the $10,000 in an interest bearing account until the matter is resolved. So that is what we did.
Now, as we are down to just days until our court date, our lawyer is acting as it is some kind of great surprise that we are thinking were going to receive the $10,000 laying in escrow. Stating the mortgage should be paid thru escrow and he’ll not argue the matter in court. This now leaves us on our own as we feel the remaining $10,000 would be paid thru the trustee, as we had filed on this amount and paid in full as agreed upon. Our homestead should protect the equity in our home (up to $250,000 in the state of Nevada) and if the $10,000 was not used to pay the secured debt (first mortgage) it would be used to pay other unresponsive debt attached to our BK. We feel this would be in violation to our homestead rights. We do not understand how it could even be possible that the trustee would not be obligated to settle this debt. So we called them.
They said they were simply waiting for judges orders on the court date of the 21st to disperse these funds as the judge whished. And that there personal opinion of this matter is that our lawyer needs to “get his ducks in a row”.
Where should the $10,000 still owed on the first mortgage come from? Should it be paid by the trustee or by the equity from our home? Also do we have a case against the mortgage company for harassment or wrong doing in the course of these events?
Thank you for any help in this matter.
Last edited:

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential