Avoiding Foreclosure

[Cramdown]

I am fixing to be 3 months late on my house payment and I wanted to know if I file CH13, will I be able to keep my house and my car or shoudl I go with Ch 7 and reaffirm the car and the mortgage? How do I determine which is the way to go?

Thanks===cd

[laurannm]

If you intend to keep the house then Ch 13 would be your only option. In order to keep the house and/or car and file Ch7 you must be current on your payments

[lrprn]

I am fixing to be 3 months late on my house payment and I wanted to know if I file CH13, will I be able to keep my house and my car or shoudl I go with Ch 7 and reaffirm the car and the mortgage? How do I determine which is the way to go?

Your results on the required Means Test and Schedules combined with your district's and local court's interpretations of the current bk law determine if you qualify to file for Ch 7 or must file Ch 13. There's some play in the way the figures can be juggled by an experienced bk lawyer to push for one or the other, but most of the time finding out whether you qualify for a 7 or 13 is pretty straightforward.

Since you seem to want to keep your house, it will help us a lot to how much you currently owe on the home compared to how much it's actually worth in today's not-so-good real estate market?

Also if you don't have to pay any non-secured debts any longer, does that free up enough cash to meet all your living expenses?

A last few questions - what state are you in, are you filing with a spouse or alone, and how much income from all sources did you (and your spouse if they are filing with you) make over the last six calendar months?