Everything is so confusing....(sorry it's a little lengthy)
Met with lawyer today..we retained him back in Oct/Nov 2008. He said we are just over the median income by around $2500-3000/yr. We do qualify for CH7 though. We are 2 months late on HELOC and 1 month late on 1st mortgage. Our first mortgage is in the modification process. Paperwork is in and was told by Chase that it's in "the second phase" and "it might be a few weeks but that it will go to underwriting soon." It is a WAMU owned loan. So it's a waiting game. If they offer us a decent modification the lawyer thinks we should file a CH 13 and lien strip the HELOC and pay for the new mod. payment (if its affordable).
If the modification isn't suitable then we file CH 7 and include the house and let it foreclose..what happens to the HELOC..I don't know. We can't afford to pay the mortgage at the current rate anymore.
Now if we are sued by a credit card co. we have to go ahead and file.
Also...we have over 100k in credit card debt (been brewing for the past 15 yrs) so he thinks the UST will probably scrutinize this. Said we may have to give statements for the past year. There were living expenses, a vacation, toys, Christmas, etc. kids clothes and last October my DH bought me a $4,000 three stone anniversary ring and band for our 15th anniversary. Paid with a Mastercard. I had my original wedding ring made into a necklace. Wedding and engagement rings are exempt in VA. WIll there be a problem if he sees this charge and make me give up my rings? These are the rings that I now wear all the time as my wedding rings. We probably won't file for another 2-3 months.
Another variable (we seems to have many) is I have been offered a job (which is nice considering I have been looking since Aug.08), but we can maybe get by with a CH7 and add on to the groceries and entertainment to cover a PT salary, BUT it has the possibility to go FT and that would force us into a CH13. I also DO NOT want to work for this company FT. I've worked there before..don't like the owner that much. It's very small and no A/C just 1 or 2 wall units. I don't want the stress of managing an office. Problem is if we are in a CH 13 the lawyer said I couldn't quit a FT job once I am in the Ch 13. Would I be able to quit AFTER I find another FT job somewhere else?
Sorry it's long.
Thanks
He also we may have to get rid of our timeshare, so to use up the points before we file as much as we can. Can we do that?
Met with lawyer today..we retained him back in Oct/Nov 2008. He said we are just over the median income by around $2500-3000/yr. We do qualify for CH7 though. We are 2 months late on HELOC and 1 month late on 1st mortgage. Our first mortgage is in the modification process. Paperwork is in and was told by Chase that it's in "the second phase" and "it might be a few weeks but that it will go to underwriting soon." It is a WAMU owned loan. So it's a waiting game. If they offer us a decent modification the lawyer thinks we should file a CH 13 and lien strip the HELOC and pay for the new mod. payment (if its affordable).
If the modification isn't suitable then we file CH 7 and include the house and let it foreclose..what happens to the HELOC..I don't know. We can't afford to pay the mortgage at the current rate anymore.
Now if we are sued by a credit card co. we have to go ahead and file.
Also...we have over 100k in credit card debt (been brewing for the past 15 yrs) so he thinks the UST will probably scrutinize this. Said we may have to give statements for the past year. There were living expenses, a vacation, toys, Christmas, etc. kids clothes and last October my DH bought me a $4,000 three stone anniversary ring and band for our 15th anniversary. Paid with a Mastercard. I had my original wedding ring made into a necklace. Wedding and engagement rings are exempt in VA. WIll there be a problem if he sees this charge and make me give up my rings? These are the rings that I now wear all the time as my wedding rings. We probably won't file for another 2-3 months.
Another variable (we seems to have many) is I have been offered a job (which is nice considering I have been looking since Aug.08), but we can maybe get by with a CH7 and add on to the groceries and entertainment to cover a PT salary, BUT it has the possibility to go FT and that would force us into a CH13. I also DO NOT want to work for this company FT. I've worked there before..don't like the owner that much. It's very small and no A/C just 1 or 2 wall units. I don't want the stress of managing an office. Problem is if we are in a CH 13 the lawyer said I couldn't quit a FT job once I am in the Ch 13. Would I be able to quit AFTER I find another FT job somewhere else?
Sorry it's long.
Thanks
He also we may have to get rid of our timeshare, so to use up the points before we file as much as we can. Can we do that?
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