Question about surrendering

[coak1875]

I have a question - I am going to file Chapter 7 May 2011 jointly with my husband through legal helpers we have already start paying them legal fees, I am surrendering my house, I have heard people talk about the money that you save and the trusty my questions are:

1) Should I stop paying my 1st mortgage now, I have not paid my 2nd in over 2 years - the mortgage is $310K first - value at $148K 2nd is 59K,
2) If i stop and pay some of the money on my student loan and my husband pays back child support that he owes would that be an issue with the trustie.

I would rather give that money towards something we cannot discharge versus have them take it. Any ideas? - We are in Florida I know every state is different. We do plan to stay in the house until the bank decides to Foreclose or sell. We are with American Home mortgage.

[AngelinaCat]

Hi coak1875: I moved your question into a thread of its own, as it was being buried and not seen in the thread about high-maintenance pets.

Good luck to you, but be wary of 'legal helpers'. Unless the person you are talking to is a Florida Bar certified attorney, they cannot legally give you 'legal' advice. If things go wrong, YOU will be held liable.

What part of Florida are you in?

[tcreegan]

Hello coak1875,

Goodness gracious, stop paying the mortgage !

Use the money to follow 'Cats advice: get an attorney. (And don't be shy to shop around, most offer a free consultation. Some folks here on the forum went through a half a dozen before they found a good fit.)

And you need an attorney to answer this question: Will paying the back child support and/or student loans be a preferential payment to a creditor or would it be OK b/c child support and student loans are higher priority creditors?

I suspect the answer is 'pay the child support', but the student loans.....hmmm...not so sure


Keep posting here on the forum, you will find many helpful folks, many supportive folks,

Tom in Colo

[rikimaroo]

Keep paying the child support, that will not be discharge by chapter 7. I did chapter 7 and I didn't even ask, because the attorney already told me I can't. I really wouldn't want to stop paying it anyways, its for your child.

Student loans are another thing. Some can be discharged, and some cannot be. From my understand any student loan backed by the federal govenerment is non-dischargeable.

PS... Do stop paying your mortgage immediately.

Rikimaroo

[tcreegan]

Hi all,

Unfortunately rikimaroo, now all student loans, public and private, are non-dischargeable.

Congress helping us out in 2005 w/ the new BK law......

Tom in Colo

[rikimaroo]

I have to agree to disagree unfortunately. In my situation, my wife had a conventional student loan and after discharge it was wiped. I don't know why, I was also told by my attorney it would not be and lo and behold credit report showed that it is no longer our responsibility. We also called them up and they said that account closed, etc...

It is a legitimate student loan for college, so not sure what happened, but it did.

Just possibly a lucky circumstance and thats it, circumstance, hehe.

rikimaroo

[tcreegan]

You lucky dog!! I have been reading cases involving student loans and the only case I saw discharged was a guy that had Hodkgins Lymphoma, a vascular disease that was rotting his joints, plus something else.....and they even asked him about small computer jobs he could do b/c he could still move a mouse with his left hand. Even when someone wins at the BK court level, the lender appeals up to the circuit court where it gets overturned.

Folks file APs, go to three different levels of fedral court, and still get turned down. You just include it on the creditors matrix and it gets discharged! You must be living right.....

Tom in Colo, absolutely green with envy....

[coak1875]

I am in coconut creek florida, the person I met with at legal helpers was the actual attorney who practice in Florida.

[coak1875]

Wow, I finally did not send my payment in for October, 2010, I feel like I am being haunted. I know looking at the numbers there is no way I can even keep this house. Its just that waiting until May of next year to file just feels like forever. Not paying just makes me feel bad. But proper planning is important any tips would be appreciated.

[rikimaroo]

Just an update to this thread. The student loan company finally contacted us back and we are now paying them again and it is being reported to the credit bureaus. So nope, no free getaway on that one.