Looks like we will be just over median income to easily qualify for Chapter 7, but our lawyer is doing the mans test to see if she can get us a 7 instead of a 13. My question is we have a HELOC of $19,500 that we have the option to lock the rate for a fixed number of months. It will increase our payment 300%, but it is a secured debt, and we are keeping our house in which we have no equity. This would reduce our monthly disposable income, so is it a good move to lock the rate?
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It's only a good idea if you can actually afford the higher payment. -
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Our Disposable Income with the lock rate would still be $468 a month, so we can afford it, and it would have that debt paid off in 5 years. We are still hoping for a 7. We have $45k in student loans that we can't discharge, $101k in unsecured business debt (failed LLC with guarantees), and $32k is personal unsecured debt. Our mortage is $181k, HELOC is $19.5k, and home value is $190k.Comment
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Have you gotten your home appraised lately? That 190K home might be only $170K. If so, you can lien strip the HELOC in a CH13.
What kind of cars do you have now?Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17Comment
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Had the home appraised already, and we have a 2005 Honda Civic Hybrid which we owe $8200, and a 2000 Nissan Xterra totally paid off. Plus a 2005 Honda Motorcycle (wife's) which we owe $3400.Comment
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