Newbie is Looking for a Help on HELOC

[sjcmCA]

I thought I can be qualified for ch7 but I would not.

(First Question)
If I file ch13, what happens to the house I will surrender?
Therer are 1st mortgage and HELOC.

- 1st: 280k
- HELOC: 89k
- Current Market Value: 280k-300k
- HOA: 240/month

As far as I know it takes several months to be foreclosed but my ch13 would be filed several months before the foreclosure.

What would happen on HELOC and unpaid HOA dues in ch13 program?

(Second Question)
My income would be reduced from Feb 2010. Is it possible to convert my ch13 to ch7 through a NEW means test? (I would pass the means test but still a little over the state median income).

Any advice will be very helpful to the newbie here.

[lrprn]

I thought I can be qualified for ch7 but I would not.

Why do you think you can't qualify for a Ch 7?

If I file ch13, what happens to the house I will surrender?
Therer are 1st mortgage and HELOC.
- 1st: 280k
- HELOC: 89k
- Current Market Value: 280k-300k

If you surrender the house as a part of your bankruptcy, both loans will be wiped out.

Have creditors gone to court and placed any liens on your home?

As far as I know it takes several months to be foreclosed but my ch13 would be filed several months before the foreclosure.

How long the foreclosure process will take depends on the state you live in. Which state is that?

What would happen on HELOC and unpaid HOA dues in ch13 program?

If you surrender the house, the first mortgage and HELOC will be wiped out. Unpaid HOA dues up to filing day will be wiped out too. What happens to your HOA fees again depends on what state you live in and how your local bk court has ruled on who has to pay the HOA fees after filing. This is a question you'll have to ask your lawyer.

My income would be reduced from Feb 2010. Is it possible to convert my ch13 to ch7 through a NEW means test? (I would pass the means test but still a little over the state median income).

If your salary reduction is going to last for a considerable length of time or permanently, then yes, your lawyer can amend your plan to get reduced payments or if you qualify, convert your Ch 13 over to Ch 7.