Hi everyone....I am really new to this and am trying to read as much about bk prior to our meeting with an attorney next week.
My biggest concern with filing a BK is that we could lose our house. Our mortgage is lower than most rentals in our area and we have equity in the home so we would like to stay. We are current on our payments.
We have $60k in credit card debt which is the reason for looking into bankruptcy since my pay was reduced at work. We should pass the means test to file for a Chapter 7.
But this is where I get nervous. In Califonia you can claim up to $100,000 as a homestead exemption. We currently owe $356,000 on our house so I thought we would be ok. But I looked at Zillow and was shocked to see that our house on there shows a value of $456,000. Putting us right at that $100,000 mark.
Has anyone filed in CA recently? How was your home valued? I am afraid that 2 months from now when we finally get before a trustee that our house will appreciate even more!
If they want to re-evaluate your home do you get the opportunity to pay the difference? We have an IRA we could cash out for $5000 or $10,000 to keep the house.
Also can you switch to a Chapter 13 if the trustee wants to sell your home? I just don't want to get in there and have a huge surprise and not get to keep our house.
My biggest concern with filing a BK is that we could lose our house. Our mortgage is lower than most rentals in our area and we have equity in the home so we would like to stay. We are current on our payments.
We have $60k in credit card debt which is the reason for looking into bankruptcy since my pay was reduced at work. We should pass the means test to file for a Chapter 7.
But this is where I get nervous. In Califonia you can claim up to $100,000 as a homestead exemption. We currently owe $356,000 on our house so I thought we would be ok. But I looked at Zillow and was shocked to see that our house on there shows a value of $456,000. Putting us right at that $100,000 mark.
Has anyone filed in CA recently? How was your home valued? I am afraid that 2 months from now when we finally get before a trustee that our house will appreciate even more!
If they want to re-evaluate your home do you get the opportunity to pay the difference? We have an IRA we could cash out for $5000 or $10,000 to keep the house.
Also can you switch to a Chapter 13 if the trustee wants to sell your home? I just don't want to get in there and have a huge surprise and not get to keep our house.
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