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Planning to file Chapter 13

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    Planning to file Chapter 13

    My husband makes about $57k per year and we earn $1,375 from our Guest House in the back. We are underwater on the house by $170,000 and plan on having our $77,000 2nd mortgage lien stripped.

    Are we risking too much if we stop making mortgage payments and credit card payments before filing BK? We owe about $5k in property taxes which I am told need to be paid current, and our home is in need of repairs. We don't see how we can budget in repairs in the re-payment plan.

    Also our mortgage is an ARM set to adjust in 6/11. Does the Bankruptcy Judge Modify or fix our interest rate?

    After the BK depending on our disposal income we will have reduced our monthly debt by $1,000+ per month which makes me think that this home with a $400,000 mortgage and rental income is affordable.

    Am I deluding myself?

    #2
    [QUOTE=bkause;246881]My husband makes about $57k per year and we earn $1,375 from our Guest House in the back.


    Do you claim this as rental income on your taxes?
    "Don't let your wants overload your a**"
    (author unknown)

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      #3
      Yes. We have for the last 2 years.

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        #4
        You need Just Broke's help, sounds like a similar issue. Research Just Broke's screename and I think it will answer alot of your questions.
        "Don't let your wants overload your a**"
        (author unknown)

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