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What to do???

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    What to do???

    First, let me say THANK YOU to those who take the time to answer questions here!

    I guess I will start by giving a little background information on our situation. We are married. We have a mortgage that is in my husband’s name only (my name is on the deed) with a balance of $36,000. We are unsure of our exact equity in the home but when we bought it 2 years ago, it was appraised for around $89k. Giving us $53k in equity. However, we feel that is not an accurate appraisal because the home is in poor condition. After closing on the home, the insurance company came out to take pictures and collect more info for the policy and we received a letter a week later informing us that the policy was being canceled. The home is uninsurable because of its condition (we tried several other companies after that) and we now pay for forced placed insurance through the bank (protects their interest in the home, not ours). Moving on, my husband has two vehicles with loans ($30k and $15k), a credit card ($5k) and a personal loan for $15k in his name only. The only debt in my name is medical (roughly $20k).

    We have payed the attorney his retainer fee and submitted some documents to him but have not filed yet. Here are our concerns..we want to keep the house and the $15k truck loan out of bankruptcy. The farmhouse has been in my husband’s family a LONG time (every one of our neighbors is family) and our plan has always been to buy it and remodel it. If we cannot keep the house out of bankruptcy, then we will not file. Indiana gives roughly $20,000 per person exemption for home equity but we exceed that if we go by the appraisal value from two years ago that we disagree with. (The attorney is supposed to be sending a real estate evaluator out to assess the home before we file.) My question is, since the majority of the debt that we want discharged is in my husband’s name only, should he file separately and would that protect the house from bankruptcy since my name is on the deed? All of our payments are current and we live in Indiana if it matters. Any input is appreciated!!

    #2
    Welcome to BKForum. We have many members, here, that can tell you all the horror stories with their homes. I understand your issue.

    The problem will be the equity in the home. The Trustee will likely not care that it is uninsurable; they only care about money. A strategy could be to obtain a residential appraisal performed by a license appraiser on a Uniform Residential Appraisal Report (URAR), in Indiana. Since you ahve money on the table, this is a serious question for your attorney. If the Trustee comes back, sees the equity, and wants a piece, then I say that the URAR is the next thing. That may scare off the Trustee or cause a showdown. It may even go to a trial, but your attorney should be versed in this area of valuation and/or exemption hearings.

    It reads as though your attorney knows exactly the process and is proceeding as I suggest.

    I would follow the attorney's advice. I'm not sure if only one of you filing is going to save you if you have joint debt that you can't service after the spouses discharge. The creditors could just come after you... after discharge.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Justbroke,

      Thank you for the quick reply! My husband has found new employment and we are considering not filing at all now. We meet with the attorney on Thursday and will discuss our options with him then. Thanks again!

      Comment


        #4
        Income is always a good thing. Let us know how it works out with the attorney.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment

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