Hi All,
I am several months away from needing to file (dependent on when the mortgage company starts foreclosing on my rental). I want to keep my primary residence if the new law is passed that allows the BK judge to modify the primary/seconday loans to market value. I expect an 8k tax refund this year and may be selling another rental for a possible equity return of $30-40k.
I ran across this article the other day:
Second, is your home likely to need expensive repairs such as a new roof or air conditioning? Does your home need to be painted, or does it need expensive plumbing? Does it need its windows or doors replaced? Whatever the expensive repairs or replacements, do them before you file bankruptcy. After your bankruptcy is filed, you probably will not be able to get the credit you need to take these expensive steps.
Third, do you need new appliances such as a washer and dryer? Is your television or your computer on borrowed time? Do you need a new garage door opener? Does your home need a security system? As with the home repairs or replacements, you should consider the age of your appliances and whether it is likely that they will need to be replaced in the near future. If you answered yes to any of these questions, then replace the appliances, television, etc. before your bankruptcy is filed. Again, you may not be able to get the credit you need to take care of these important items after your bankruptcy is filed.
I was wondering.. do you think as stated above if it would be ok to spend this extra money on replacing my primary homes' windows and doing other improvements such as tiling the balconies, laying patio pavers and redoing my pool and adding a heater, etc..
Or.. do I have to stick to just basic repairs on home/car and purchases such as food/clothing?
I was originally thinking about using the money to pay down some of my equity loan on my primary res but realize that it may be throwing money away if the loans are modified by the BK judge to market value...
Thx for the help
-tk
I am several months away from needing to file (dependent on when the mortgage company starts foreclosing on my rental). I want to keep my primary residence if the new law is passed that allows the BK judge to modify the primary/seconday loans to market value. I expect an 8k tax refund this year and may be selling another rental for a possible equity return of $30-40k.
I ran across this article the other day:
Second, is your home likely to need expensive repairs such as a new roof or air conditioning? Does your home need to be painted, or does it need expensive plumbing? Does it need its windows or doors replaced? Whatever the expensive repairs or replacements, do them before you file bankruptcy. After your bankruptcy is filed, you probably will not be able to get the credit you need to take these expensive steps.
Third, do you need new appliances such as a washer and dryer? Is your television or your computer on borrowed time? Do you need a new garage door opener? Does your home need a security system? As with the home repairs or replacements, you should consider the age of your appliances and whether it is likely that they will need to be replaced in the near future. If you answered yes to any of these questions, then replace the appliances, television, etc. before your bankruptcy is filed. Again, you may not be able to get the credit you need to take care of these important items after your bankruptcy is filed.
I was wondering.. do you think as stated above if it would be ok to spend this extra money on replacing my primary homes' windows and doing other improvements such as tiling the balconies, laying patio pavers and redoing my pool and adding a heater, etc..
Or.. do I have to stick to just basic repairs on home/car and purchases such as food/clothing?
I was originally thinking about using the money to pay down some of my equity loan on my primary res but realize that it may be throwing money away if the loans are modified by the BK judge to market value...
Thx for the help
-tk
Comment