The attorney filed the wrong motions. . . . Instead of providing an appraisal of the house he did a Brokers Price Opinion. . . The judge told me I needed to find a good attorney. Now there is a real estate agent that has been hired to sell my mother's house. Not sure what to do next.
So, let me guess. . .
Your mom filed a Chapter 7 knowing that there might be sufficient equity in the home, over the allowed homestead. The attorney filed a Motion to Abandon the home from the bk estate and used a BPO as evidence that the property was of inconsequential value and burdensome to the estate. The Trustee argued otherwise and the judge agreed. Am I close?
Assuming this is what is going on, what about negotiating with the Trustee to hold off on any sale. Ask the Trustee to issue a claims bar date. Once that date passes, agree to pay all timely filed claims and the Trustee's legal fees
(edt. to add -or the amount of the non-exempt value, whichever is less). Assuming this amount is manageable, based upon the equity in the home, have mom, with the Trustee's approval, refinance or get a 2nd mortgage to pay the amount due to the Trustee. But only use the home as collateral if she cannot raise the funds from some other source.
If the current attny is not sufficiently versed in how the local trustees handle matters then shop around to see if this or any other suggestion is viable in your mom's area. I can tell you that we have taken over cases for this very purpose and, in each, have worked it out so that the debtor does not loses the home.
Des.
