Introduction, question about lawyers & how equity is figured

[Dirk Squarejaw]

[JRScott]

Hello, welcome to the forums .

First you should know that most people fail to complete a Chapter 13 bankruptcy and are forced later to refile as a Chapter 7. A few do manage to complete the Chapter 13.

If I'm not mistaken your equity in the house mentioned is 9k since you owe both the mortgage and equity loans.

Whether or not you could keep it in a Chapter 7 depends on your state's exemptions.

Also the choice of a Chapter 7 or Chapter 13 is largely up to the courts. You have to take a means test and through it you can see which you would be placed into.

What state do you live in?
How much have you made over the last 6 months?
What other secured debt do you have?
Do you have child support or alimony payments?
Do you have school loans that you are paying on?
Do you owe any back taxes?

If you can make most of your obligations except the unsecured (credit card/personal loans) debt with just your teaching job it might be best to leave your second job, wait 6 months and then file bankruptcy.

[SinkingFast]

The home equity question is fairly straight forward.

Take the Fair Market Value, less reasonable costs to sell, less your mortgage(s), and that's your equity for BK purposes.

To get a "free" idea about your home, call a couple local Real Estate Agents. Tell them you're thinking of selling. They'll pull comps (homes similar to yours that have recently sold and closed), give you a reasonable asking price, tell you what all costs are involved in selling, and tell you how much you'd make if you were to receive a full price offer.

That'll give you a good idea where you stand on your home.

Just because you're over the Median does not necessarily mean you'd be a Ch 13. Try this link:

http://www.legalconsumer.com/means-t...ator/index.php

Plug in your info and you'll get a good idea of where you stand.

[JollyGG]

Additonally, If the only thing keeping you from being able to file a chapter 7 is the second job, and if you could make ends meet for a couple months without the second job if your unsecured debt was gone you could consider quiting the second job.
You would quit the second job, wait until your six month look back reflects a low enough income to quilify you for a chapter 7, then wait for discharge and go back to having a second job if you choose.
But first look at the means test and see if you qualify with both jobs. Also meet with a few lawyers and see what they say.

Keeping the house would be a possiblity in a chapter 7 as long as your payments are current and you have enough exemptions to cover the equity. You should also be able to keep the car as long as payments are current and you have enough exemptions to cover the equity.

The answers to JRScotts questions would help us give you a better idea of where you stand.

[Dirk Squarejaw]

[QUOTE=JRScott;99237]

What state do you live in?

Indiana

How much have you made over the last 6 months?

$25k

What other secured debt do you have?

1st mortgage, home equity line, and car. Just those three.

Do you have child support or alimony payments?

No.

Do you have school loans that you are paying on?

No.

Do you owe any back taxes?

No.

I cannot make it with just the teaching job even w/o the unsecured debt. Even with cutting corners I would be a little short. Indiana's exemptions will cover the house and my car. The car is pretty much even as far as worth and payoff if not just a hair upside-down at least the last time I looked.

Also, what effect would getting back with my ex-wife make on all this (long story and probably a done deal)? If I end up having to go 13, would this affect paying the trustee? Or do they need to know anyone is living with me? If it works out, she would move back in around March '08. I can't make it until then and I feel its my duty to do something about my debt, not her....... but what if she is helping out around the house financially after my payments have started if I go 13?

[fedupw/ccdebt]

Dirk...I am also from Indiana. Good luck to a fellow Hoosier with all this.

Does anyone know if a 2nd mortgage come into play in dealing with the housing exemptions? We are trying to keep our home while doing a 7 and think that the equity we have will be covered with our home exemption. We also have around $20,000 left on a 2nd we took out about 10 years ago when we refinanced.

Any thoughts...?