My wife and I were about to lose our house and we filed chapter 13 about a month ago. 3 days before our meeting with the creditors my wifes mother passed away. Now we find out that we have money coming to us from a life insurance policy that she had (50K). (We live in Ohio)
I understand that the money will go to the trustee... all but what we are exemted from, so we are considering dropping out of the 13 program. We have not yet had our meeting with the creditors, it was scheduled the day after her Mother passed, but they changed it due to the situation.
We would have to pay around 15K in arrears on the mortgage. I also have other debt but it is mostly unsecured. The biggest part is from a line of credit for a business that I had (25K). When my business dissolved I tried to get the bank to re-write the mortgage and add the 25k to that and they wouldn't do it. BTW we only have one mortgage and about 25k in equity on 120K home.
I would rather continue with the bankruptcy and have a fresh new start to our financial life. I liked chapter 13 because we could still pay on a portion of our debt and get back on track. BUT... I hate to give up 50K. Also this is like the one time that we will get a lump sum of this kind of money, mabey ever. I don't want to screw it up and get look back syndrome in a few years.
Questions:
I did read that there is an $8K exemption in Ohio for life insurance. Is that doubled since we are filing together?
Since the money was left to my wife could she keep it and I file chapter 7 and still not lose the house?
Should I go back to my bank and see if they will re-write the loan now?
This is a very hard time. First and foremost my wife loses her Mother, and my kids their grandmother way to early at the age of 48 to Cancer. We were not prepared for that. Then to have to make decisions about an amount of money like this, at a time like this is even harder. I am trying to be the strong husband and guide us thru this, but it is awful hard to know what the right thing to do is. In a lot of ways I wish we were not getting the money.
Thanks for any help.
I understand that the money will go to the trustee... all but what we are exemted from, so we are considering dropping out of the 13 program. We have not yet had our meeting with the creditors, it was scheduled the day after her Mother passed, but they changed it due to the situation.
We would have to pay around 15K in arrears on the mortgage. I also have other debt but it is mostly unsecured. The biggest part is from a line of credit for a business that I had (25K). When my business dissolved I tried to get the bank to re-write the mortgage and add the 25k to that and they wouldn't do it. BTW we only have one mortgage and about 25k in equity on 120K home.
I would rather continue with the bankruptcy and have a fresh new start to our financial life. I liked chapter 13 because we could still pay on a portion of our debt and get back on track. BUT... I hate to give up 50K. Also this is like the one time that we will get a lump sum of this kind of money, mabey ever. I don't want to screw it up and get look back syndrome in a few years.
Questions:
I did read that there is an $8K exemption in Ohio for life insurance. Is that doubled since we are filing together?
Since the money was left to my wife could she keep it and I file chapter 7 and still not lose the house?
Should I go back to my bank and see if they will re-write the loan now?
This is a very hard time. First and foremost my wife loses her Mother, and my kids their grandmother way to early at the age of 48 to Cancer. We were not prepared for that. Then to have to make decisions about an amount of money like this, at a time like this is even harder. I am trying to be the strong husband and guide us thru this, but it is awful hard to know what the right thing to do is. In a lot of ways I wish we were not getting the money.
Thanks for any help.