Hi,
I am so confused. My husband's home (where he lived before we got married) is being rented and we are "in the hole" with house and will probably be foreclosed on. We both have filed BK before so are pretty ashamed about being in this situation again.
I have started graduate school, and last Nov. changed my status from full-time to part time. Anyway, the atty suggests that we wait until May to file, which we planned. He said that there is a change we will still be at Ch 13. Not sure if it will be 100% payback or not, but he said we will save money even if we have to go Ch 13 route. He said as far as foreclosure, whenever bank (BOA) would foreclose, all that would happen probably for difference, would be they would send 1099 to us to be reported as income on taxes. Other than that he said we really would not have any ill-effect. The advantage of BK for us would be, according to atty, is that we would have everything paid off in 5 years, we would not have to pay taxes form 1099. Right now we are in debt management (not debt settlement) and we should be paid off with their program about 18 months sooner according to the plan they have laid out for us. The BK atty said any time the creditors in debt management can change their minds and demand to be paid in full (another advantage of BK). The actual agreement with debt management company is for 24 months at a time, then renews every 24 months.
I am just so confused. I am wondering if I ought to quit school and go back to work full-time (I'm 53), so we can keep with our old income.
Any advice would be greatly appreciated.
Thank you.
I am so confused. My husband's home (where he lived before we got married) is being rented and we are "in the hole" with house and will probably be foreclosed on. We both have filed BK before so are pretty ashamed about being in this situation again.
I have started graduate school, and last Nov. changed my status from full-time to part time. Anyway, the atty suggests that we wait until May to file, which we planned. He said that there is a change we will still be at Ch 13. Not sure if it will be 100% payback or not, but he said we will save money even if we have to go Ch 13 route. He said as far as foreclosure, whenever bank (BOA) would foreclose, all that would happen probably for difference, would be they would send 1099 to us to be reported as income on taxes. Other than that he said we really would not have any ill-effect. The advantage of BK for us would be, according to atty, is that we would have everything paid off in 5 years, we would not have to pay taxes form 1099. Right now we are in debt management (not debt settlement) and we should be paid off with their program about 18 months sooner according to the plan they have laid out for us. The BK atty said any time the creditors in debt management can change their minds and demand to be paid in full (another advantage of BK). The actual agreement with debt management company is for 24 months at a time, then renews every 24 months.
I am just so confused. I am wondering if I ought to quit school and go back to work full-time (I'm 53), so we can keep with our old income.
Any advice would be greatly appreciated.
Thank you.
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