Pay off house?

[rcoveles]

I just got off the phone with my broker. I thought all of our money with him was tied up in Roths and a SEP IRA, but apparently, we do have 36k in securities, which I'm guessing would be fair game in either a 13 (as NE assets) or a 7.

It is February right now, and I was planning on waiting until July sometime to file (and am still undecided between 7 or 13 - I can do 7 because about 99% of my debt in non-consumer).

He advised me to cash those securities in and pay off our house, which we owe just about that amount on.

I am filing, my wife is not, and our house is exempt under PA rules. The securities account is joint.

Is this a no brainer? Should I do this like immediately, regardless of what chapter I eventually file, or am I missing something? The only downside that I can see is it will add approx. 1k a month to disposable income if I wind up doing a 13, but I'm honestly really leaning toward a 7, though the slight possibility of a 13 does still exist.

[forgotten]

It probably doesn't make sense in a 13, since, as you said it will create more disposable income.

If you were in a 13 and had $36k in non-exempt securities then you would need to pay at least $36k in to your plan. If your disposable income was around $600/mo, then no problem, you keep your securities and make that payment.

If you luqidate the securities and pay off your home then, as you said, your disposable income goes up $1000/mo. You now pay $1600/mo instead bringing your 60 months of payments up to $96,000 instead of the $36,000 in the above case.

You just need to run all the numbers...

If you are doing a 7, no brainer, pay off the house since it is exempt.