Haven't been able to find this question asked

[hope2retire]

I'm currently in the process of paying off the lawyer so I can file Chapter 13. I have approx 150,000 unsecured debt, a condo with a first and scond that is about $2000 upside down, 2 paid off cars 13 and 6 years old (approx $5000) and a second vacation home with about $45,000 equity. Income is $92,700 gross.

I was hoping for input on 2 questions.

1) Will I be able to claim the utilities on the second house as expences?

2) I owe $3800 on my fed taxes for 2008 and received $1600 back from state. I could pay the taxes if I don't make my condo payment but I can't afford both the taxes and the mortgage. Paying the taxes will take every penny I have.

I would really appreciate some advice.

[StartingOver08]

You can put your federal taxes in you Ch 13 - they become a priority debt and will be paid in your plan payment.

I am not sure about the utilities, they are debt so it can be added, I'm not sure of the process.

[AngelinaCatHub]

I'm currently in the process of paying off the lawyer so I can file Chapter 13. I have approx 150,000 unsecured debt, a condo with a first and scond that is about $2000 upside down, 2 paid off cars 13 and 6 years old (approx $5000) and a second vacation home with about $45,000 equity. Income is $92,700 gross.

I was hoping for input on 2 questions.

1) Will I be able to claim the utilities on the second house as expences? I don't think so. Utilities in a second house is a luxury as is a second house. I would advise you to ask your CPA.
2) I owe $3800 on my fed taxes for 2008 and received $1600 back from state. I could pay the taxes if I don't make my condo payment but I can't afford both the taxes and the mortgage. Paying the taxes will take every penny I have. Pay your taxes first. If you have not been late before, the late payment will be less than the tax penalties.
I would really appreciate some advice.

Advice is not what we give here in most cases. Opininons are. In no way do we give 'legal' advice. 'Hub

[lrprn]

To help you, we really need to know which state you live in. (Forgive me, but I'm not familiar with which state is considered the 'land of fruits and nuts' - there are many possible candidates across the US )

It would also help to know if you have a spouse that is filing bk jointly with you and how many children/adult dependents you have living with you currently. Also is the gross income you listed yours alone, yours + spouse (if you have one), and if it includes *all* sources of income looking back six full calendar months.

[hope2retire]

I live in CA, the income is mine and that's all of it, no husband, no children

[relief13035]

Land of fruits and nuts???

I live in CA

Absolutely hysterical........and I bet he's not talking about the edidible fruits and nuts.

[lrprn]

I live in CA, the income is mine and that's all of it, no husband, no children

Thanks for the information - very helpful.

CA is the only state that has two different bk exemption schemes and you have to choose one (they can't be mixed) - see http://los-angeles-bankruptcy.net/ca...exemptions.htm for a comparison of both schemes.

Which set of exemptions are you hoping to use?

You asked two questions in your original post:

1) Will I be able to claim the utilities on the second house as expences?

It depends on if you can protect the second house under the exemption scheme you choose. What's the current equity (if any) on both homes? Do you have other properties you hope to keep after filing?

2) I owe $3800 on my fed taxes for 2008 and received $1600 back from state. I could pay the taxes if I don't make my condo payment but I can't afford both the taxes and the mortgage. Paying the taxes will take every penny I have.

One of the wonderful advantages of filing Ch 13 is that overdue taxes can be rolled into your plan and paid back over time. Also overdue home payments can be rolled into your plan and paid back over time as well. You need experienced legal advice to sort out which is the better path for you to take - paying your condo payment now or the taxes now.

Have you set up 3-4 free intiial consultations with experienced bk lawyers in your area yet? If you haven't, then it's time to do so. You'll learn about how things are going to play out with your properties, what potential risks you may have if you file, and which of the two CA bk schemes will work best in your unique situation.

Good luck and hang in there! You've taken the first and most important step - you realize there's a problem that isn't getting better and finding out what you can do to remedy it. Way to go!

[hope2retire]

Which set of exemptions are you hoping to use? I don't know, not that smart yet

It depends on if you can protect the second house under the exemption scheme you choose. What's the current equity (if any) on both homes? Do you have other properties you hope to keep after filing? No, I have the house, the condo and 2 old cars. With this market the Condo has no equity left and the house has about $45000. I refinance the condo about 4 years ago to buy the house.

Thanks for your input

[lrprn]

Until you know which of California's exemption schemes you are going to use, we can't help you sort out which of your assets can be protected when you file or not.

Sounds like your best option now is to set up 3-4 free initial consultation with experienced bk lawyers in your area. Pull together all your financial information to make the most of the visits.

With your complex financial situation, don't try to file this case on your own. You need excellent legal advice to make sure you protect everything you can when you file and so you are clear if any of your assets will need to be surrendered or you'll have pay the trustee for to keep because they can't be protected.