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Chapter 13 - Few Questions

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    Chapter 13 - Few Questions

    I am new at this so I apologize if my questions are out of the ordinary; however, my husband and I recently retained an attorney to file for Bankruptcy. After calculating our income, she informed us we should file Chapter 13 (Although we are only over by a few thousand dollars) Anyway, here are some of my questions/concerns

    1. Although we make slightly over the median income for a family of five, when we do the calculations, we show a negative monthyl disposable income. Will we still qualify for a Chapter 13 or will we have other options.

    2. We are current on our mortgage and car payments. We were told we will roll the payments into the plan. Is that correct?

    3. My husband has a rental property which he co-owns with a friend. The property has no mortgage. We live in Delaware. We were told that we are able to exempt up to $50,000. We were told whatever it comes back appraised, we would divide that in half (since he owns it with a friend) and if it's less than $50,000 we can exempt it. Am I understanding that correctly.

    4. Will we be able to keep our tax refund? We use that to pay our children's yearly day care expenses. If we are able to exempt up to $50,000, can we exempt it under that?

    Any information that can be provided would be very helpful in helping me uderstand this stressful process. Many thanks in advance!!!
    Chapter 7
    Petition Filed: 3/24/09
    341 Meeting: 5/15/09
    DISCHARGED!!!! 7/20/09

    #2
    I THINK you should be able to qualify for a 7 if you have a negative disposable income but hopefully others will chime in. From everything I've heard, some attorneys like to push people into a 13 instead of a 7 because they get more money. And if you do have to do a 13, I would imagine you would want to pay mortgage and car payments OUTSIDE the plan because otherwise the trustee makes more money off you (they get a percentage of whatever is paid in the plan) but I think depending on where you are, you might not have a choice.

    Gee, I guess I am not much help but just wanted to say good luck!!

    Comment


      #3
      Take a look at my thread in "Chapter 7" area (I am new too)...you will find some helpful things. I am finding out you possibly can go to chapter 7 even if you make more than you should. One person said they were 12,000 over and still filed 7.

      Good luck!
      $70k- Unsecured Debt
      $88k- Secured Debt (HELOC/2nd)
      $200k- Land investment gone bad. (Land secured)
      1st- $366k / House Value- $300k

      Comment

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