can i file chapter 13 if im below the median and do a lien stripp?

[messedup]

ladyinthered, yes i do have the cash to pay the settlement i have been putting away cash for years for a time like this or for when im in bk. i think ill be insolevent, all i have is my upsidedown house and a 5,000 dollar car. bk for us would seem like a long 5 years of no tax returns and payments. ill just pray that they extend the "mortgage forgivness act". till then ill just keep finding some how to save some money for taxes for next year.

[LadyInTheRed]

ill just pray that they extend the "mortgage forgivness act". till then ill just keep finding some how to save some money for taxes for next year.

Taxes will not be an issue if you are insolvent immediately before the debt is forgiven. You don't need the mortgage forgiveness act to be extended. There are no asset exemptions when determining insolvency, so you need to count all the cash you've saved when determining whether you are insolvent. See IRS Publication 4681 for information.