We are deeply underwater on our house. Estimated value is 300k, we have a 1st for 400k, 2nd for 40k and a 3rd for 50k. Both the 2nd and 3rd were not cash out, the 2nd was the 20 of an 80/20 for the purchase and the 3rd was for a pool.
We have a lot of cash, about 125k. I'd like to purchase a new house using that money then file a homestead on that home. We live in Las Vegas and I understand that a homestead would protect a 125k in equity.
After the purchase is complete and we move into the new home I'd like to see if a ch13 would be a legal option to remove the mortgage obligations on the home we currently own and live in. I know this has been termed "buy and bail", in our case I wouldn't need to pretend I was going to rent out the old house, as we would either buy paying cash for the new house or have a sizable down-payment, so please let me know if I'm missing something, but I think this would be a legal option for us.
More detail... Both my wife and I are self-employed, our business is formed as an LLC and we are owners and employees of the company, so we get a paycheck each month, but also earn income as owners of the business. The nature of our business is consulting as a programmer and graphic designer on an hourly basis for a few clients. So we do have consistent monthly paychecks, but I'm not sure how we'd calculate our total monthly income as it varies based upon how much billable work we do each month.
How would cash and office equipment for our LLC be treated in any ch13? Is it separate and not brought into the mix or do they treat it as personal property as my wife and I are the only business owners?
I think our situation is probably unique in that we are not currently struggling to make bill payments. However, we could easily lose a couple clients and then be in the situation of not having enough income to meet expenses. I'm trying to see if there is plan we can put together now while we are not panicking and in urgent need for help.
If this scenario would work, is it any better to not file ch13 immediately, and instead let the home we leave just go into foreclosure instead? I would imagine that we would eventually need to file a ch13 anyway, but i wasn't sure if maybe there was a reason we'd need to wait before doing so right after buying a second home and filing the homestead on that new property.
Is a homestead of 125k for both me and my wife? I'm curious if I was single would I also get a 125k exemption?
We have a lot of cash, about 125k. I'd like to purchase a new house using that money then file a homestead on that home. We live in Las Vegas and I understand that a homestead would protect a 125k in equity.
After the purchase is complete and we move into the new home I'd like to see if a ch13 would be a legal option to remove the mortgage obligations on the home we currently own and live in. I know this has been termed "buy and bail", in our case I wouldn't need to pretend I was going to rent out the old house, as we would either buy paying cash for the new house or have a sizable down-payment, so please let me know if I'm missing something, but I think this would be a legal option for us.
More detail... Both my wife and I are self-employed, our business is formed as an LLC and we are owners and employees of the company, so we get a paycheck each month, but also earn income as owners of the business. The nature of our business is consulting as a programmer and graphic designer on an hourly basis for a few clients. So we do have consistent monthly paychecks, but I'm not sure how we'd calculate our total monthly income as it varies based upon how much billable work we do each month.
How would cash and office equipment for our LLC be treated in any ch13? Is it separate and not brought into the mix or do they treat it as personal property as my wife and I are the only business owners?
I think our situation is probably unique in that we are not currently struggling to make bill payments. However, we could easily lose a couple clients and then be in the situation of not having enough income to meet expenses. I'm trying to see if there is plan we can put together now while we are not panicking and in urgent need for help.
If this scenario would work, is it any better to not file ch13 immediately, and instead let the home we leave just go into foreclosure instead? I would imagine that we would eventually need to file a ch13 anyway, but i wasn't sure if maybe there was a reason we'd need to wait before doing so right after buying a second home and filing the homestead on that new property.
Is a homestead of 125k for both me and my wife? I'm curious if I was single would I also get a 125k exemption?
Comment