Chapter 13 Question

[momofthree]

Again, I repeat... the Heloc COULD turn out to be unsecured and be stripped. The car could be crammed down. We don't know without the numbers.

He said he has equity in the car--so no cramdown, but the HELOC is a good point. If the loan could be stripped, that could potentially free up a large chunk of money depending on the amount...

[keepsmiling]

The wife's car is upside down.

[John1]

Again, I repeat... the Heloc COULD turn out to be unsecured and be stripped. The car could be crammed down. We don't know without the numbers.

Keepsmiling,

I am pretty sure the Heloc is secured to the house. It was provided by my local bank. I will work on posting the other loans/values.

Thank you.

[ValleYum]

Keepsmiling,

I am pretty sure the Heloc is secured to the house. It was provided by my local bank. I will work on posting the other loans/values.

Thank you.

Yes, your house is tied to the HELOC as collateral but what they are talking about when they say that your HELOC could be unsecured is referring to a little quirk in a Chapter 13 bankruptcy known as a lien strip.

A good explanation of this can be found here: http://www.thebklawyer.com/thebkblog...ien-stripping/

Hope this helps!

[John1]

I have an appointment with an attorney tomorrow. I thought I saw somewhere on here, questions to ask your attorney. If someone could give me that info I would greatly appreciate it.

[frogger]

Increase income and decrease debt.

That is your solution and while it won't hurt to investigate a chapter 13, I do not believe that a 13 will solve your problem.

You're in much the same boat that I was in, with too much secured debt and not enough income to cover it due to a variety of problems.

Make a few appointments with bk lawyers and discuss what a 13 can do for you, but also be thinking about what a 7 could do for you as well.

Good luck.

[lrprn]

I have an appointment with an attorney tomorrow. I thought I saw somewhere on here, questions to ask your attorney. If someone could give me that info I would greatly appreciate it.

Here are two reliable links that list questions you should ask during your initial free consultations with at least 3-4 bk lawyers:
http://www.*************************...ptcy-attorney/

http://www.moranlaw.net/interview.html

Take along a summary of all your debt (secured and unsecured) and a month-by-month itemized assessment of your total income from all sources over the past year. With your irregular income, that will give a better picture of your overall earning than looking back just the last six months.

Finding the right bk lawyer is half the battle, especially in Ch 13. Call your state's bar association and ask for bk lawyer referrals in your area. Ask your friends "for a friend" for names of any lawyers they have used and trust. Even if the lawyers aren't bk lawyers, the lawyer group in your area is a tight one. Lawyers know who is good and who is not. You're likely to get good bk lawyer referrals using both of these methods.

The lowest fee and the highest fee are not necessarily a guarantee of good representation during a bankruptcy. Take your time, learn about both bk chapters so you'll understand the right questions to ask about your specific situation, and do this right the first time. Doing this will pay huge dividends later.

[John1]

Thanks for the info.

Frogger,

Did you let the house go?

[frogger]

Thanks for the info.

Frogger,

Did you let the house go?

Yes. Swallowed a whole bunch of pride and moved on with life......

[John1]

Update. Met with the attorney. Very nice lady. Bottom line chapter 13 is out. Just like some of you said, too many secured loans.

So in a nutshell. A full blown chapter 7 walk away with a suitcase, is the best option. Now its just a matter of when. I will ride it out for awhile and see if I can weather the storm. If not, freedom is a phone call away..