Deciding between 13 and 7

[ando]

I am trying to make up my mind between 13 or 7. Lawyer suggesting 13 but something came up recently and decided to take an early out from my job and relocate to outside the U.S. to a foreign country. Now if I file 13 I will be stuck with 5 years payments .By the way,I do have equity in my house an amount exceeds my debts. Lawyer said he is trying to save house therefore suggesting 13. Wife wants to move out of the U.S. to be with her family at retirement and I have to move with her. The question is, should I tell my lawyer to file 7 , get rid of house and pay debts ,this way I can go on with my life ,or should I get stuck with 5 years payments and delay relocation?

[OhioFiler]

We need more details to offer much value to your question.

On the cover it seems to me that a good plan would be to sell the house and leave the country without worrying about the bill collectors or filing bankruptcy.

[hereforinfo]

I would try to negotiate a smaller payoff with creditors and pay them from the proceeds of selling the house. Then take whatever is left over and make a fresh start in a new country.

[ando]

Thanks , this sounds good. should I have my lawyer negotiate the deal , since he is payed in full to file my case. and during negotiation, do my creditors get their money in relation to sale price or depends how good of a negotiator I am?

[hereforinfo]

Is your debt unsecured? What I meant was, sell the house. Then negotiate with your other creditors to settle for less than owed. Credit card companies would usually go for something like that if you have the cash to pay right away. You could offer 5-10% of the balance, but make sure you get the agreement in writing.

Your mortgage lender is not going to take less than the balance owed since you have equity in the house. The loan(s) would have to be paid in full when you close the sale. But since you have equity, you could use the rest of the money you get from the sale to negotiate with your other creditors.

[catleg]

How much equity do you have in your house? You know NY has a 50k homestead exemption right?

[ando]

all my debts are unsecured, and yes NY has $50 correct. I have about 150,000 equity. debts are 100,000,

[catleg]

So with wife you can exempt 100k of equity, so the question is low much can you lowball your equity to minimize your estate for a ch7. Because that's probably going to drive your required payment if you choose ch13 as well. Any chance you can borrow against some of that remaining equity to zero it out(i.e. get it down to the exemption level of 100k)? If you can spend the proceeds on an exempt asset or living expenses, for example. By the way how is the house titled? Jointly?

[ando]

the house is in my name only so I can only exempt 50. I asked my lawyer if I can have my wife's name before I file so I'll have the 100 , he said no I can't

[keepmine]

I'd suggest either, sell the house and default on the cards and run for the border or, sell the house and pay 'em off.

I don't see a bk helping you at all.

[catleg]

How close are you to getting judgments against you? Are all the unsecured debts in your name, are some in her name or joint? If there's any chance of selling now that might be a good idea.

[ando]

I stopped paying my unsecured debts that constitutes credits cards and personal loans all unsecured about 7 months ago. no action yet on part of my creditors except calls to my house and letters from collectors.

and yes all debts are in my name nothing in wife's name .

[ando]

Should I get my lawyer involved in this, I mean to sell house and negotiate with my creditors , since he is already got paid in full. I feel getting the money back is not going to be easy going head to head with your lawyer, so I figure let me put him to work for it.

[hereforinfo]

First I would ask him for a refund. I am sure he will refund you for the portion of the money that he hasn't yet earned. If not, see if he even handles debt settlement negotiations. I would sell the house and pay the debts, you never know when you may decide to move back to the states. You don't want that hanging over your head, and you can be very relieved to have it gone especially if you can settle for a lesser amount on some or all of the debt.

[ando]

Thank you hereforinfo, I was not thinking for a minute to leave the country without settling my debts first. I agree with you about discussing that with my attorney.