Ok, I'm confused

[LizardTail]

I'm planning on filing Ch. 7 shortly. I am single, one car, one house, no job. Just got laid off. I keep reading where people are losing their house and/or car. I can continue to make payments on my house/car. Could I potentially lose them?

Thanks in advance for your help/advice.

[BKDefender]

If your creditor is the type that will reaffirm (i.e. not FORD - they hate reaffirmations), and if your house and car payments are reasonable, and either your attorney (if you have one) or the judge (if you filed pro-se) do not believe it is a hardship for you to keep them, then you're good.

--William

[LizardTail]

Thanks for your speedy reply!

Car is a 2004 honda and I owe about 8,500 on it. Was a lease, then I purchased it. It has less than 50K miles. (I took the bus A LOT!). Note is $285/mo.

House is in modification from $1,450/mo to $1,291/mo. Modification should be done at end of March, but I'm sure once BOA gets wind of the BK, that will all explode, no?

I should have no problem getting a position paying at least 40K in the near future.

[BKDefender]

Sorry for all the 'qualifications' (if, if if) but I just had to refuse to approve a client's reaffirmation because although he wanted to keep his house, he couldn't afford it on his present salary nor his expected salary over the next year. It made me feel like crap doing it, but if he reaffirms a house that is $150k underwater, and can't pay it after bankruptcy, then he'll be back in the same position but not able to file bankruptcy again for 8 years. In that case, and any case where your attorney doesn't approve, we submit them to the court and let the judge decide if he will allow it.

--William

[LizardTail]

No problem about the 'ifs'. I currently have about $6,000 equity in my house. Will they still take it? I'm definitely not underwater with the house.

[BKDefender]

I was born & raised in Texas (Hempstead TX outside of Houston) until I moved to Vegas 6 years ago. One thing I can tell you, unless it's changed, is that Texas & Florida have unlimited (i.e. infinite) homestead exemption. Meaning you could own a $10M home free and clear, and as long as you lived in it for more than 1215 days, you could keep it.

--William

[LizardTail]

Well, I'm in Austin, so I believe that's good. I've owned the house since Dec. 28, 2007.

Speaking of Hempstead, did you know poor ol' Charles Marshall went under? I'm rather glad, was tired of those commercials. I lived in Houston until 5 years ago. LAWRENCE, sorry, not CHARLIE

[BKInLA]

My attorney in CA told me that if you can make the payments, the judge won't not allow you to keep your house and car because they think it isn't in your best interest. If you're current and can stay current just ride it out.

Can you hold off on the filing until after the mod gets confirmed? I have been waiting for 5 months for my loan mod through my CU and just got it so now I'm set to file maybe in early March.

[LizardTail]

I can hold off filing BK, but from what I read about BOA finalizing modifications on time is not very encouraging. After I pay March, my trial period will be over. I am current on both my mortgage and my car.

My attorney is not very talkative and I fully regret hiring him. But, I'm going to stick with him since all the paperwork, etc. is done. It bothers me that it takes somewhat harsh telephone calls to his assistant to get him to communicate with me. However, after reading this board, I don't see that that is very uncommon.

I've worked for attorneys for 30 years and NEVER would they not call clients back or stay in contact with them. It just seems odd that BK attorneys do this. However, I've only worked for corporate attorneys.

[BKDefender]

Yes I heard Lawrence Marshall's closed down. It was the largest employer in town and it's kinda sad to see how the town has declined since then when I go back for Christmas each year. I went to school with his grand-kids and my parents owned the small drug store in town (I was a soda jerk at an old style soda fountain as a kid) and Lawrence used to spend time at the store to get away from everyone wanting things from him :-)

--William