filing and not wanting to keep the home

[werebroke]

were do I start, besides thanking everyone here for some advice !!!
THANKS !!!
Deep in Debt.....80 plus in unsecured cc and loans
Upside down on our home, except the 1st mortgage may be covered, but not the second.
We would like to file and not keep the house, move out of state, back home with family were we can possibly gain employment again (currently Unemployed). Our situation is we own land back in our home state, and its our understanding that because it is free and clear it will have to be sold off to pay creditors. I would rather let our current home go, is there any way around this????? Maybe do a foreclosure, then later file bankruptcy. Current state is AZ, hoping to move back to Minnesota with family.

[eddiep]

Since you are not using your homestead exemption on the home could you use it for the property? What is the value of the land vs your exemption?

[werebroke]

Well, the land is in another state, and not homesteaded. So I don't know that we could use the exemption for the land in lieu of the house. I am thinking not. just because the land holds about the same market value as our home, but the land is free and clear and the home is upside down. I sure wish I could find the clear answer. Attorney's that I have spoken with are unclear as to the law in different states. Anyone have idea's ???

[StartingOver08]

I am afraid that the land is an asset of yours. Since it is owned free and clear - the Trustee is going to want to either sell the land or have you pay for the value of it in your BK estate.

Here is a case where the debtor tried to exempt vacant land in another state and was not allowed to do so. Of course, maybe the attorney for your area knows better - but I suspect this is what BK is all about - finding assets to pay creditors. Remember the Trustee looks out for the creditor and your attorney is suppose to look out for you.

http://www.miwb.uscourts.gov/jdgopinions/gosnick%20opinion.pdf