Exemptions & Reaffirmation
My spouse and I are considering filing Chapter 7. Currently, our income comes up short of our basic expenses (including our mortgage and car payment) each month by about $25 - $50. Our home has an approximate value of $300K and we owe $176K on it. Our car is worth approx $20K and we owe $19K on that.
My question is, since we have a fair amount of equity in our home, would we be forced by the trustee to surrender the house to pay the unsecured creditors of whom we owe approx. $50K. Since our mortgage and car payments are current, would entering into reaffirmation agreements with those secured creditors save our house and car? If we do enter into reaffirmation agreements, when is it done? - Before or after the initial filing? By the way, we are located in Pennsylvania.
Thanks for the help.
My question is, since we have a fair amount of equity in our home, would we be forced by the trustee to surrender the house to pay the unsecured creditors of whom we owe approx. $50K. Since our mortgage and car payments are current, would entering into reaffirmation agreements with those secured creditors save our house and car? If we do enter into reaffirmation agreements, when is it done? - Before or after the initial filing? By the way, we are located in Pennsylvania.
Thanks for the help.
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