You may qualify for bankruptcy today, but that doesn’t mean that you will qualify in a month, 6 months or in a year. Likewise, the fair market value of your real property may be lower than the amount you owe on your first deed of trust today. However, with rising property values in recent months, this may change in 6 months or a year. Thus, if you want to get a fresh start or get rid of a 2nd deed of trust on your property, take action today and keep in mind that merely hiring a bankruptcy lawyer does not mean that your case is filed.
Although it merely feels like income to you, residuals or royalties are considered an asset from the view of a bankruptcy trustee. This is why it is crucial to have an experienced bankruptcy attorney examine your entire financial situation, not the way you see it, but the way it is seen by a Chapter 7 Bankruptcy Trustee or a Chapter 13 Bankruptcy Trustee. The chapter you file can affect your ability to keep those residuals yours and to have them for years to come. When you are getting ready to file bankruptcy, don’t jeopardize your livelihood. Consult with a bankruptcy expert before your case is assigned to a trustee whose job it is to sell the shirt off your back in order to pay your creditors on a pro rata basis.