Need some advice from people

[jenbow]

Hello all.. I have been new to this forum and have spent most my time on Chapter 13 board. I was told by my lawyer today that we will not qualify for chapter 13 as we owe more than the $360,000 unsecured debt. So, my options are chapter 7 or chapter 11.

Here is what I know
Chapter 11

• Cost will be $12,000 for attorney fees
• Tied to courts for 5 years
• Will take 1 year or so to file
• Not sure what budget payment will be but unsecured payment would be low
• Can strip 2nd mortgage of $100,000
  

Chapter 7

• Cost will be $3,500 for attorney fees
• No ties to courts
• Will take 2 - 3 months to file
• Cannot strip 2nd
• Husband will have to stop providing income now so we qualify. But his business is upside down and probably will close soon so this will not be a problem.

We owe $200,000 on first and $100,000 on second. House is appraising for about $150,000. I love this house and was hoping to retire in this house.. our interest rates are fixed for 30 years. I really do not want to give this up.

I will still owe $95,000 on student loans and $60,000 in payroll taxes. This will not go away.. We also plan to keep our two cars that we still owe $20,000 each

For all those experienced people.. what would you do?? Chapter 11 or 07?
I cannot tell you how much anxiety is going on.. I need sedatives in a serious way.

thanks for spending time reading this and any advice you might have

[newbie2]

Hello all.. I have been new to this forum and have spent most my time on Chapter 13 board. I was told by my lawyer today that we will not qualify for chapter 13 as we owe more than the $360,000 unsecured debt. So, my options are chapter 7 or chapter 11.

Here is what I know
Chapter 11

• Cost will be $12,000 for attorney fees
• Tied to courts for 5 years
• Will take 1 year or so to file
• Not sure what budget payment will be but unsecured payment would be low
• Can strip 2nd mortgage of $100,000
  

Chapter 7

• Cost will be $3,500 for attorney fees
• No ties to courts
• Will take 2 - 3 months to file
• Cannot strip 2nd
• Husband will have to stop providing income now so we qualify. But his business is upside down and probably will close soon so this will not be a problem.

We owe $200,000 on first and $100,000 on second. House is appraising for about $150,000. I love this house and was hoping to retire in this house.. our interest rates are fixed for 30 years. I really do not want to give this up.

I will still owe $95,000 on student loans and $60,000 in payroll taxes. This will not go away.. We also plan to keep our two cars that we still owe $20,000 each

For all those experienced people.. what would you do?? Chapter 11 or 07?
I cannot tell you how much anxiety is going on.. I need sedatives in a serious way.

thanks for spending time reading this and any advice you might have

You asked what we would do.. I personally would give up the house. Even if you could strip the 2nd you are still underwater by $50,000 (without the 2nd) and you will exit bankruptcy owing on the student loans and payroll taxes.

I personally would walk away from the house and just deal with the debt you can't discharge.

Good luck.

[SMinGA]

Its a tough one. In one respect its easy to say 'give up the house' but there are more things to consider. Can you rent somewhere for less than you're paying now on the mortgages? And if you could, would the lower rent be enough to offset the fact you'd lose the tax deduction for mortgage interest?

You mentioned you have over $360k in unsecured. Is this jointly or just one of you? How does it break down? (Such as Joint = $X. Yours = $Y. Spouse = $Z.) Would your husband qualify for a ch. 7 to discharge his unsecured debt? Your income would be counted as much as it contributes to the household - but you also have student loan payments & payments on the payroll taxes. If he could do that, would it leave you under the ch. 13 limit for unsecured debt?

[jenbow]

umm. I wonder about filing seperatley. This is a very good question and one that I will ask the attorney tomorrow. It all is soo confusing and I really apprecitate all the feedback I can get. I have never been this overwhelmed but know I have made some crazy decisions to get myself in this place. thanks all

[SMinGA]

I don't know if it would work - but seems like something worth asking. As far as I know, the unsecured debt limits are per case and not per person filing. (Unless most exemptions, which can be doubled for spouses filing together.)

umm. I wonder about filing seperatley. This is a very good question and one that I will ask the attorney tomorrow. It all is soo confusing and I really apprecitate all the feedback I can get. I have never been this overwhelmed but know I have made some crazy decisions to get myself in this place. thanks all