In a trick bag

[mastiffmix]

Hello, First time poster. I've come seeking some advice if anyone can spare a little. Today I called inquiring about a free consultation regarding bk and was basically told that we can't file 7 since we're late on our mortgage and car pymt and we can't file 13 since my husband is on unemployment and my income isn't enough, is this all true? I've done a little research and what I've read is not very enlightening and that is what led me to these forums today for some insight.

We are drowning in medical bill debt from an accident my husband had that nearly killed him. He is being sued now and we feel like bk would give us a chance for a fresh start. It has been a rough couple of years since his accident, we were never able to get back on track because all of a sudden when he could go back to work, work was not available due to tough economic times and lack of work, etc.

[scorpion35]

run away from that lawyer and go get 3-4 more free consultations
of course u can file BK7 if u are late on your mortgage and car
do u plan on keeping your house?

[mastiffmix]

Yes most definitely cannot lose the house or car (need to get to work) Thanks for responding so quick.

[keepmine]

Filing a Chapter 7 won't save your house or car unless, you can make the payments. Those are secured debts and lenders can file for relief from stay and proceed with foreclosure and repossesion if you aren't current.
In a13, you have to have a reliable source of income to fund the plan. Secured debts are paid at 100% plus, any arreage on the mortgage or auto loan is paid at 100%.

[enuffznuff]

Are you sure you understood the attorney correctly? Of course you can file chapter 7 if you're behind on your car and mortgage payments, but since you said 'most definitely cannot lose house or car" perhaps you misconstrued the attorney saying you can't KEEP them just by filing ch 7...you can't keep them unless you pay for them. Some people reaffirm those loans (you still have to pay them) and some people 'ride through' (continue paying but don't reaffirm) but you don't get to keep the house and car and NOT make the payments, you would have to start paying on them again to keep them.

[mastiffmix]

The thing is, I never spoke to an attorney. It was more of someone asking me questions prior to scheduling the free consultation. She asked values of my house, car, any loans and things of that nature. She was trying to figure out what would be best for our situation and suggested perhaps Chapter 13 to keep the house and car. But then, when we talked about the fact my husband was on unemployment, she said you need a "reliable" income. I was really more interested in Chapter 7 to eliminate the debt and I basically came out of that conversation feeling unsure and lost due to her saying we needed to be current on our loans. If there was any way possible, I'd keep the car and house out of it as I plan on getting caught up, but I know that's not possible. I just would like to eliminate the debt I have in hospital bills.

[tcreegan]

current or behind

Hello mastiffmix,

You can file Ch 7 BK if you are current or behind on your payments, makes no difference. What does make a difference is keeping the house and car. You will need to be current b4 you file or be able to work something out w/ the lenders.

BUT....it may not be in your best interests to keep the house and car. It usually isn't, but many folks have an emotional commitment to their house and can't imagine life w/o a car. Getting some impartial advice never hurts, and before you file BK, you have to take a debt management class....so an opportunity arises! Go to the website of your BK court and find the list of approved agencies, take the class, talk to the instructor about the decision to file Bk or not, file 7 or 13, keep the house or not, keep the car or get another one (got to have a car).... Be sure to go in with an open mind, you aren't making a decision, just gathering information.

Best to you with your decision,

Tom in Colo