keeping home with ch.7?

[pete7226]

I'm considering filing chap.7, I'm current on my mortgage and want to keep and continue paying on it as well as my car. My cc debt is about 40k which is the reason for filing. I make 3800/month and all of my bills including food,gas,credit cards, loans are about 4300/month. Is there a provision for keeping your property or do you have to sell it when you file?

[anonymuse]

First, you need to look at two things. (1) Your income and how it relates to the national averages--this is called the means teat; (2) Your assets and whether they are covered by federal or state exemptions.

The median income in Illinois is $43,012 for a single filer. Being over that doesn't mean you don't qualify for Ch 7, it just means that you have to complete the whole means test to see if you qualify.

http://www.usdoj.gov/ust/eo/bapcpa/bci_data/median_income_table.htm

The Illinois Exemptions are here: http://www.bankruptcyforum.com/t7052-illinois.html

Look at the stickies at the top of the forms and you'll learn a lot--especially "The Tactical Bankruptcy Manual II" http://www.bankruptcyforum.com/t6635...manual-ii.html

[pete7226]

thanks

[SinkingFast]

When you figure the equity of your home,........

You take the current market value, subtract real estate fees and other closing costs, and your mortgage to get your current equity. It's not simply current market value, subtract your mortgage. So that will give you a bit of wiggle room.

Also, when you're figuring your expenses for BK, you don't include the bills your dumping. You don't include your CC payments or any loans you'll be discharging in the BK.

If your equity in your home is such that you're gonna be able to keep it, you'll be able to annualize that forward on the Means Test if your current house payments are greater than the Schedules allowance for rent and utilities. Say the Schedules allow you $950/mo for rent and utilities and your current house payment is $1500/mo. If you're gonna pay payments for in excess of 5 more years, you get to deduct the additional $550/mo of your house payment as Secured Debt on the Means Test.