I have not filed Chapter 7 yet but hope to as soon as it is the right time. Right now, because I haven't had any income in the past 4 months the means test is very much in my favor....I have a negative income because of business losses. I want to reaffirm my house in the hope that it will sell in the next year so I don't have a foreclosure on my credit and so I can meet that commitment. I am fearful that the judge will insist that I include it in the bankruptcy because my income is less than my expenses right now. I would like to make the payments out of the home equity until my income goes up at which time I hope that I won't be upsidedown. I feel confident that I can find work after I have spent some time retraining. Does anyone know whether a judge or trustee will allow you to reaffirm your home even if you don't currently have the income to pay the mortgage but have sufficient equity in the short term (about $5K) to cover a few months mortgage payments?
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If you are not working it's going to be very hard to keep your home with no proof of income to make payments.....
You may have equity in your home, but not access to it now.......
So if you were planning on living off the equity in your home, it may not be possible now....
MinnyMinny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different. -
What kind of retraining are you going through that will be complete in a few months with a guaranteed job at the end? I'm sure you'd like to keep the house? Who wouldn't? But I have to agree with Minny. Even if the trustee allows you to keep your home, the lender will probably take issue with your lack of income.
As a side note, I don't know a lot about mortgages, but I don't see how you can pay your mortgage using money from an equity loan. Don't you have to make payments on that equity loan too?Comment
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I can answer your second question, Jenny.Originally posted by Jenny
We are 5 months in arrears on our mortgage. Our lender keeps trying to get us to tap the equity we have, either thru a HELOC or an equity loan, to make up the payments to them. Doesn't matter that we're preparing to file BK, they just want their money. Any way they can get it.
As long as Confused stays current on the mortgage payments, the Lender won't care where the money is coming from. Confused could be standing by the lamp post on the street corner every night and the Lender wouldn't care. Confused could be standing at stop lights with a sign and a box for donations and the Lender wouldn't car. When you stop paying, that's when they wanna know why.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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The home is mortgaged to the hilt with a home equity line of credit on which there is a $15,000 balance (although the home value has sunk now). The mortgage payment and HELOC payment are on a draw from my checking account which has an overdraft secured against the HELOC. So basically both payments get pulled from the checking which then pulls enough funds from the HELOC to pay them.Comment
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