Keep the house

[eddiep]

Has anyone kept their house while filing for chapter 7?

[keepmine]

Sure. If your equity is below what your state exempts and you're current on the mortgage.

[eddiep]

I am current on the mortgage, but I am trying to get my mortgage restructured. Will we have to prove that we can afford the mortgage? With my current payment and expenses we are coming up short.

[keepmine]

This really isn't a bk issue. It's something you and your lender need to hash out. If you can't afford the mortgage, you really don't need to try and keep the house.

[eddiep]

The problem is I do want to keep the house, we have been here for 13 years and hope the hubby's income will increase as the economy picks back up. The problem is do we have to prove that we can afford it? Its not much but there is a deficit. Will we be able to adjust our expenses on paper to make it fit, or do they even care? There is not enough equity to force a sale. I saw in someone's post that they were getting forced into chapter 13 because they did not show a deficit. What figure are they looking for.

[katie]

From what I understand you have to have less than $100 disposable income after means test. That is not much at all. I'm not sure if different states have different amounts though.

I wonder what happens when you have a negative amount after means test. Do you have to show that you can make more income?

[Help!]

....The problem is I do want to keep the house, we have been here for 13 years and hope the hubby's income will increase as the economy picks back up.

I sure wouldn't make any decisions based on the hope that the economy is going to improve any time soon. I'd be pretty nervous about keeping a house with only $100 disposable income each month. What if hubby's income decreases? What if hubby gets laid off? What if the furnace dies? If you don't have savings to back you up, it seems to me you'd still be in a bad place after bankruptcy. Just my opinion...

[eddiep]

Thanks for your responses. I guess this is something i will have to press the lawyer on. It probably will be tough, but we are working with the bank to modify the mortgage.

[relief13035]

Yes - we kept 2 houses.

[eddiep]

relief13035

What did your expenses end up as, if you don't mind me asking. what was you final disposible income? I am afraid if I show a deficite they will say you can't afford the house.

[relief13035]

Actually we were -700ish dollars. I thought being so far in the negative that we would be asked to surrender something, but NOTHING happened.

[eddiep]

OMG you made my day! We are about -500. What did you expenses look like. were they accurate, like I am going to have to scrimp on everything to even end up at that figure.

[eddiep]

I know this sounds totally stupid but do you use the net or gross for the median income test?

[relief13035]

For the most part our expenses were listed accurate.

Our attorney used the amount of food that was allowed, but we definately don't eat that much (or maybe I am just a good bargain shopper).

I did enter what my health insurance cost was each month, but now with my new job they pay 100% of my premium. I think we will do just fine in our budget now.

Use gross wages for the median income.

[eddiep]

Thank you, that helps alot. The hardest part and what probably got us in this trouble in the first place is that we never used a budget, what ever we needed or wanted we just bought it and now we are trying to figure out what we can/should/do spend, and present it to the court and stick with it.