Chapter 7 Question (new mortgage)

[BK09]

I am considering filing but recently obtained a mortgage in september 2008. Does anyone know how this will be considered in the filing? I am current on the mortgage and will continue paying - my problem is with 55K in CC debt. I had this debt load when I closed on the loan so its not new. Main reason we're struggling is because CC company raised min due from 2% to 4%.

Also, regarding the means test -

Income of 82K (median here is 63K) - from this 82K does the calculation allow you to deduct living and other expenses?

Thanks for any replies............I am new to the forum and will do my best to assist others from what I learn as I go.

BK09

[justbroke]

Since you indicate you'll be filing Chapter 7, you'll probably need to re-affirm the mortgage. The first thing you need to do, is to make sure you are not in the hole with the mortgage.

Your mortgage balance should be near but not less than 10% of the value. (Or, your equity should be covered by your Homestead Exemption.) Example, your mortgage balance is $200K and the house is worth $180K. I'd say that that is okay to keep. However, if your mortgage balance is $200K and the house is worth $150K, you need to seriously think about whether you want to waste $50K.

There really is nothing else.

[BK09]

Thanks for the reply.

As far as the mortgage is concerned.........

Mortgage is for 197,000...........house appraised for 200K at close - if we are current on the payments, can afford, and wish to keep, we should be able to keep right?

[justbroke]

Thanks for the reply.

As far as the mortgage is concerned.........

Mortgage is for 197,000...........house appraised for 200K at close - if we are current on the payments, can afford, and wish to keep, we should be able to keep right?

Absolutely. You're in a good position to keep it.