To file or not to file

[techguy74]

First off, this is an incredible site with an abundance of information.

On to my dilemna. I bought my home in 2006 shortly before the market turned south . Currently the house is worth 62,000 less than what I bought it for. During this time I have had to misfortunes, one is a federal tax lien and two child support. My current support payments and tax bill payments have brought me to a point where all bills have fallen behind.

I know that my tax bill is more than three years old and could be included in a bankruptcy if I file. I have also fallen behind on my mortgage as well as CC and car payments.

I fear filing Chapter 7 for fear of losing the house that I worked so hard to obtain. I am working even harder to keep it. Can I file Chapter 7 and just discharge my CC and tax debt but still keep the home? Or do I really need to consider Chapter 13?

I have just had enough with the IRS' threats every month. I have already paid back over 12000 in interest and penalties already. I just can't continue to do this. ..

I will also be hiring an attorney in the coming months, but would like to know my options before hand.

Please help..

[fltoo]

The chapter you file depends on income/means test.

Just wondering, why are you working so hard to keep a house that might be even more than 62 grand upside down in another few months?

Can you afford the payment if you get rid of cc debt?

[HHM]

Dump the house, there is absolutely no financial reason to keep it. It will take you more than 10+ years to dig out that negative equity, you are FAR BETTER off dumping it and buying a home in a year or 2 at more reasonable prices.

[techguy74]

Dump the house, there is absolutely no financial reason to keep it. It will take you more than 10+ years to dig out that negative equity, you are FAR BETTER off dumping it and buying a home in a year or 2 at more reasonable prices.

I want to hold on to it for fear of NEVER being able to purchase a home again.

[HHM]

I want to hold on to it for fear of NEVER being able to purchase a home again.

Well, then you are grossly misinformed about the effects of a BK. Read through this forum. BK does NOT affect the availability of credit; in the short term, it only effects the "Cost" of credit. Even FICO conceeds that a BK is no longer a negative in your score after 2 years.

FHA/HUD mortgage programs can be used 2 years after a BK. Any lender will lend to you if you have the money.

[techguy74]

Well, then you are grossly misinformed about the effects of a BK. Read through this forum. BK does NOT affect the availability of credit, in the short term, it only effects the "Cost" of credit. Even FICO conceeds that a BK is no longer a negative in your score after 2 years.

FHA/HUD mortgage programs can be used 2 years after a BK. Any lender will lend to you if you have the money.

Can I still discharge the taxes that are more than 3 years old even with the federal lien?

[HHM]

Your personally liability for the taxes will be discharged assuming they meet the qualifications to be discharged. However, the lien survives the BK. BUT, if there is no equity in the home securing the lien, you can revalue the lien to zero if there is no equity, or to some lesser amount if there is some equity.

But again, if your upside down just counting your mortgages by more than 15%, you should dump the house.