Get rid of house in Ch13?

[RK05]

Just a quick question.

Can you Not reaffirm a mortgage if you file a chapter 13 or do they make you keep the house?

[rrockinggramma]

Filing is voluntary for the most part. If you don't want the house, no one will make you keep it.

[RK05]

I just wasn't sure if a ch13 you had to keep your house or not. We don't want the house nor do we want to do a chapter 13. We are planning on doing a ch7 but with the little amount of nonsecured debt ($8K) not sure if we will get put into a ch13.

She was under the means test though?

[lrprn]

I just wasn't sure if a ch13 you had to keep your house or not. We don't want the house nor do we want to do a chapter 13. We are planning on doing a ch7 but with the little amount of nonsecured debt ($8K) not sure if we will get put into a ch13.

She was under the means test though?

Is your "she" filing alone or are you filing together as a married couple?

Frankly what decides Ch 7 vs Ch 13 is how the Means Test and Schedules come out. If more than about $170/month disposable income is showing, then it's Ch 13. If less than $100/month or no disposable income is showing, then it's Ch 7. If it's inbetween, the trustee makes a decision which way to go.

You two need to make several appointments with 3-4 experienced bankruptcy lawyers in the area. Keep in mind that the Means Test and Schedules are not completely based on your real expenses - that's why you need a lawyer to help you sort out how things are working in your district and local court. In some states, stating an intent to give up the house at filing may not allow you to include the payment in your expenses and push you into Ch 13. A bk lawyer can guide you about what's going to work in your favor when you file.

[RK05]

Thanks lrprn,
She is filing alone, as we are not married. I first wasn't sure if one chapter made you keep the house but found you can get rid of it in both.

The lawyer she has spoken with talked as if she would have no problem with the ch7. She went over the means test and said her left over money was low enough. Maybe we should see if another attorney say the same thing.

Even if she would be put into a ch13 that would still be good. Her debts beside the house are fairly low ($8K). There would be no way that she would be able to pay on the $8k plus the house though.

[imaloser]

is there any equity in the house ? could she sell it and pay off her debt ?

[RK05]

No equity in the house. It was appraised at $79K and her payoff is $144K. The bank had an offer for $82K but "lost" all of her documents. So the short sale buyer backed out.