Trustee Objection

[lrprn]

If we do find a cheaper rental, drop the 13, and deal with the credit card debt, are we on the hook for the difference between the sale price and the amount that we owe?

If you do not file bankruptcy, then yes, unless the mortgage companies both agree to a deed in lieu of foreclosure, then if the home is foreclosed then you will owe whatever the difference is between what the house eventually sells for at auction and what you owe.

[keepmine]

keepmine, we are trying to save the house to keep some stability for the kids, and the lawyer is trying to strip the lein since the appraised value of the house is less than the first mort. My husband says don't panic until we see what the objection is. If we do find a cheaper rental, drop the 13, and deal with the credit card debt, are we on the hook for the difference between the sale price and the amount that we owe? Thanks.

I gotta tell you, trying not to inconvenience kids is not a good reason to make a bad financial decision-particularly one that's a 6 figure mistake. That's a lot of money that could be used for a college fund or a nice house a few years post bk. It's hard to help anyone if you're buried in debt and encumbered with a house with $100K negative equity.
Good luck on the lein-stripping.

[HHM]

I gotta tell you, trying not to inconvenience kids is not a good reason to make a bad financial decision-particularly one that's a 6 figure mistake. That's a lot of money that could be used for a college fund or a nice house a few years post bk. It's hard to help anyone if you're buried in debt and encumbered with a house with $100K negative equity.
Good luck on the lein-stripping.

Agreed.

[bmcmull]

Why would you not in this situation leave your job and let the house go into default, it will certainly take the mortgage company 4-6 months to get you out. before leaving the home refile as a ch 7. and surrender the home for a rental. I was under the interpretation the ch7 was for people who could not afford the 13, I think the trustee is telling you you can not afford the plan as it is written up. As far as the 2nd job goes there are alot of reasons for not doing this. You have teenagers who need parents around, not slaves to a corrupted trustee who obviously does not have your best interest at hand. Does not sound like your atty does either. Good luck