help with a question

[logansdad]

I am new here and feel the love already I have a question that I have not been able to find and answer to after 2 weeks of searching.

Here is our situation, we have a condo that is rented out the person renting has made it known that he will be leaving in the spring. We are in MI where things suck right now especially rental units. We have had it appraised and it came in at 98,400 we owe 102,000 we also have to pay non homestead taxes to the tune of 4100 a year in a nutshell we are loosing 400 a month the renter pays 825.00 and our payment is 740+160 ass fee and 350 taxes. Our taxes are due at the end of the month 3200.00 I am tired of throwing good money after bad. We paid 106,000 for it 10 years ago and have wasted a serious amount of money.

We also have accumulated 69k in cc debt I am thinking of wiping out the cc debt and walking from the condo, but want to keep our main property we just refinanced our home and tried to on the condo but they told us since we lived there first and its no an "investment property" we cant??? Please help with any suggestions we are meeting an attorney this Friday. We are current on everything but I am in sales and my income is down from 72k to 45k and i may be laid off at anytime. I am tiring to plan this. It looks like we will have to do a 13 but I don't want to pay 1k/month for 60 months at 60k to wipe out 69k but the condo would be gone as well. This is very confusing.

[logansdad]

no answers?????

[liz417]

Why do you think you'll have to do a ch 13? Does your primary home have any equity in it? I would say, walk away from the condo and wipe your debt out all at once. You really should make a few free consultations with local bk attorneys before deciding on one attorney. Who knows, you may qualify for a ch 7?

Start here, plug your numbers in and see if you have any DMI (disposable monthly Income): www.legalconsumer.com

Good Luck!

[rrockinggramma]

you need to find an attorney or two or three and get some advice. You might well qualify for a chapter 7. If you just refinanced your primary residence, you probably have little or no equity in it (Mi exemptions are bad, only 3500 for a property)

If you have more equity in your primary, then you would have to file a chapter 13 to keep it but you can walk away from the condo and your unsecured debt and still keep your primary in a chapter 7. File chapter 13 only if you have to because you have too much equity in your house.

But you need to talk to an attorney asap. Are you Eastern or Western district?

[logansdad]

the house appraised at 174,000 we have a 1st on it for 138k and a 2nd for 38k, also I don't know if this maters but all 3 loans the condo our house and the 2nd are w/ same bank.

[rrockinggramma]

so if you are current on the first and the second, then I would try to file a chapter 7. You might have to get an appraisal on the house to prove you have little if any equity in it (if the appraiser uses foreclosed properties in the appraisal, then you will have no problem proving you have no equity)

But if you are current on secured debt and planning to walk away from the condo and the cc I would file chapter 7 (45,000 with a family seems below the median to me in Michigan) but you need an attorney to tell you for sure.

But I would keep the house and your vehicles and walk away from everything else.