selling the house before filing chapter 7

[13131313]

current on all bills. but i know this is not going to be the case in a short time.
I have approx 30k equity in home. i owe 85k plus 14k line of credit to mortgage co. house will appraise for approx 140k. My debt is 58k -that includes my 14k line of credit loan from my mortage co-. Once selling fee's are deducted i possiblely will have 30k. should i sell the house take the 30k and pay down debt or take a chance on filing chapter 13 and keep my home. because of age (60) i am not looking to buy another house. i would like to keep my home. my ira is approx 12k. i am retired (job was outsourced). home exemption for my state is 12,500. Please any and all suggestions are welcomed. thanking you all

[HHM]

Welcome to the forum!

First, for a chapter 13, you need some source of income in which to pay into the plan...what would that source be?

Also, you probably wouldn't be able to do anything with the 14K line of credit with the mortgage co. my guess is, its secured by your home, correct?

At the very least, you could consult a BK attorney (consultations are typically free), but realize, they will guide their advice toward filing BK, but you should be able to find out if you even could file BK.

[lrprn]

What state are you in, 13? Different states allow different levels of home equity when filing bankruptcy.

HHM has given you excellent advice about getting a free consultation with several bankruptcy lawyers in your area. You can't file Ch 13 without some visible source of income and you also must have enough disposable income left over after paying your expenses that you can use to make monthly payments that will equal at least the same return to your creditors as they would receive in a Ch 7. A bankruptcy lawyer can tell you where you stand.

Please come back anytime with questions or just to vent - that's why we're here! Good luck - keep us posted on what happens with your situation, ok? Good luck!