I'm confused?

[Chicken123]

My husband and I were planning on filing a Chapter 7 bankruptcy in Indiana, but due to our home being $5000.00 over the allowed limit, our lawyer claims we can opt for a Chapter 13 - even tho' we don't have enough money left over at the end of the month to come anywhere near what the CC companies want for payback. We were told that all we would have to repay to the creditors is the $5000.00 we are over, + tax checks etc. I guess my question is if this is true and the CC Companys refuse this...Can the trustee and the CC companys make us file a Chapter 7?

Oh! I forgot to post this in my message: We own our home free and clear

[StartingOver08]

So you own your home Free and Clear and it's value is $5000 "over the limit" for your state's exemptions.

How do you know your home is $5000 over? Did you get a recent appraisal within the last 60 days? If you did not get an appraisal, I suggest getting one. The appraisal needs to be done by a professional appraiser and use sold comparable properties that have closed within the last 90 days (NOT 6 mths old).

Do not use tax valuations. Do not use Zillow or any of the other automated valuation sites.

[Chicken123]

Indiana allows $30,000 for real estate when filing jointly...And yes we came in at $35,000 with a realtors appraisal, I just had it done a couple of weeks ago. Old farm house, needs lots and lots of work...but it's mine, and I'd like to keep it that way.

[JoeBankrupt33]

Maybe it's time to get an equity loan for $5000, if that is at all possible. Then, you would only have $30,000 in equity.

[krielly]

The credit card companies don't have to "like" your BK. They have to abide by the courts ruling....... (That's the beauty of BK vs Debt consolidation, etc)

While they can object, it can't be solely on the grounds that they aren't getting enough money.............

Yes, that makes sense. A Chapter 13 asset case requires that creditors get as much as they would in a Chapter 7 if your assets were liquidated.

In your case, creditors need to get that 5K. As long as your plan is providing for that, and all your other information is on the up and up, they don't have any grounds for objections.

K