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Stripping 2nd & 3rd mortgages in Ch 13


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My atty told me the trustee would settle for 1000.00 for my non-exempt property




I am sure your attny did not tell you this. While this is what you might have heard in your own mind, what he probably (should have) said was that you can offer $1000 to buy back the non-exempt equity but it will be up to the trustee to decide if that amount is sufficient.  The trustee has the absolute right to send out an appraiser.  A trustee must determine what is in the best interest of the creditors - not you .  If the appraiser thinks he can get more than what you offered, your offer will be rejected and a counter made.  If Carl went to view the ATV and vehicle, he told your trustee that he thought he could get net-net around $3,500.  If no one went out, the trustee did an on-line check on the items and came up with a higher number.  In the alternative, the trustee just came up with a number and proposed it to you.  This is called a counter-offer.  Standard negotiating stuff.



should my atty have made a 9019 compromise settlement in my behalf?




The answer is “no”.  A 9019 Compromise Settlement is used to settle a real controversy, not the value of an asset that a trustee can liquidate.  Valuation, in the context of the trustee selling it, is settled by the auction process.  The highest and best offer is the winner.  There is no controversy in your case such as who owns the asset.



I went to the trustee auction and had to bid against phone bidders for my property.  Luckily I won the bid, but at a great expense and 5 times more than my atty said I would pay.




This was the correct outcome.  You were trying to buy something for nothing at $1,000.00.  You did not get away with it.  Based upon hindsight you should have agreed to the counter-offer.  You did not and were forced to pay what the market would bring. 


Can I lodge a complaint against said atty with the bar asso. and BBB for misconduct in my case???




Sure you can but you won’t “win” as I doubt he did anything "wrong" or in violation of the ethical rules.



In the lien release from bank, will the money from the trustee sale go to bank and midland or just midland??




Your trustee will (or already has) issued a claims bar date.  The funds will be distributed to any creditor that files a proper claims.  If the bank, midland or any other unsecured creditor files a claim the funds will be distributed accordingly.  This is not of your concern since you will not be getting any of the money back (unless maybe if no claims are filed) so you should not care where it is distributed.  However, if you owe any pre bankruptcy income taxes, you will want to make sure the taxing agency timely files a claim as the funds go first to the trustee and his attny (if he had one) and then to priority taxes before it trickles down to general unsecured creditors.



In light of all Midland Fundings problems of late, is there a way to bring the robosigning and the fact I won the appeal the first time to the atty general eyes.  I have 6 robosigned affadavits!!  Is there a way I can keep them from claiming my money???




First, it is not your money.  The money belongs to the bankruptcy estate.  Second, while you can spend energy complaining about Midland’s actions, it might be better for you to let it go and move on with your life - the choice is yours. 



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Thank you for your response.  My complaint was that the atty did not inform me of the worst case scenario or how this would take place.  I offered the trustee 3000.00 , because that is what I put as the value of my items.  The atty told me oh , I know the trustee he will take 1000.00.  He never mentioned anything about an auction at all.  So in hindsight, I did the right thing by offering a reasonable amount.


And correct , it is no longer my money.  But it only takes a little energy to write letters and to continue to rail against JDB's. To move on, is to give up three years of learning on this site.  Thanks again for the response.

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