Home equity.

[iam4uf]

My Wife and I live in Florida. She is thinking about filing chapter 7 bankruptcy. We have about $100,000 in equity in our home. She owes about $25,000 in credit card debt that has not been paid on in a year.

If she files can they come after our home and make us sell it so they can get the equity out of it? Thanks in advance.

[HHM]

If you have $100K in equity, and only $25K in total debt, I am not seeing the need to file BK in the first place.

Please fill in the back story a little?

[FreshLikeADaisy]

Keep in mind that Florida has 100% exemption on homestead equity, but very low exemptions otherwise. You would be able to keep the house, but might not have a vehicle left to drive, for instance.

[iam4uf]

If you have $100K in equity, and only $25K in total debt, I am not seeing the need to file BK in the first place.

Please fill in the back story a little?

We can not afford any higher Monthly payments. We have a great rate now on our mortgage currently. If we refinance we will get a higher rate and wont be able to afford the monthly payment. Then, we would lose our home.

[iam4uf]

Keep in mind that Florida has 100% exemption on homestead equity, but very low exemptions otherwise. You would be able to keep the house, but might not have a vehicle left to drive, for instance.

I am new to all of this. Can you explain what 100% exemption on homestead equity is? Also, what do you mean by low exemptions otherwise.

The only car loan we have is in my name and there is no equity in it at all. We are current on the payments.

[HHM]

I am not suggesting you refi your house to pay off debt, but when you have that much equity and that little debt...I think a BK may be a bit hasty.

That is why I asked, why don't you fill us in to some degree, maybe we can help clarify your options.

Income, both you and spouse.
Total Unsecured Debt
Total Secured Debt
etc.

[iam4uf]

I am not suggesting you refi your house to pay off debt, but when you have that much equity and that little debt...I think a BK may be a bit hasty.

That is why I asked, why don't you fill us in to some degree, maybe we can help clarify your options.

Income, both you and spouse.
Total Unsecured Debt
Total Secured Debt
etc.

The rush is that the 2 CC that are over a year old are at an attorney's office (Mann-Braken) and they are threatening arbitration and law suit. So, we have offered them a settlement (40% of debt) but they won't take it. We can't afford anything else.

Basically everything is in my name (car's etc..) and has been, she was always a stay at home Mom and never had any income so there wasn't a need to put them in her name. We split up about a year and a half ago and that is when she used the CC's to live on. She then failed to make the monthly payments when the Gov't raised the minimum payment amounts. After a few Months we tried to work out a payment plan with Chase but they wanted like $400.00 a month and we couldn't afford that. After about a year and many debt collectors later it got turned over to an attorney's office who is threatening to sue.

She now works part time and is looking for full time work. last year she made about $10,000 a year. She has absolutely nothing in her name for them to take except the house, which I am not even sure that is in her name. I thought the mortgage was in my name only but some of the mortgage documents have her name on them. I don't know how to tell if she is on the mortgage or not.

I make about $60,000 a year we have 2 children. We have 2 cars, one is paid for and worth about $800. The other one we owe $21,000 and it's worth about $22,000. We are current on the mortgage (which is $1,430 a month) and all cars, just those credit cards are the only debt she has. We were thinking of her filing BK by herself. We don't care about the credit part, because we don't want any credit, that how we got into the predicament we are in currently.

Anyways, if you need anymore information let me know. Thanks