We are planning to file Chapter 7. We owe 132k on it, tax value is 156k, and homes in same condition go for about $175k. Lawyer says we will be fine with it...any other opinions will be appreciated. We live in VA with 2 kids so we can only exempt 11K....
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Hi, pay and stay....as long as you keep the payments current and continue to pay on time, every time, then you should be just fine. Please read the sticky thread at top regarding mortgages and reaffirming, it is not generally recommended to reaffirm a mortgage when you file and this thread will give you a good explanation. Good Luck! -
Sounds to me like you may have as much as $43K in equity and can only exempt 11K. What does the attorney mean by you "will be fine"? If you don't know you need to ask more questions. Does he think the trustee will abandon $22K in non-exempt equity? Does he think the trustee will accept the tax value as market value and that that results in low enough equity that the trustee will abandon it? Or, is the plan for you to buy back the non-exempt equity?Originally posted by kbaker121787 View Post
Regardless of the answers to those questions, I suggest you consult with another attorney or two with experience filing asset Chap 7 in your court.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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He said trustee will abandon due to the cost of selling it (Realtor commission, taxes, etc.) & trustee commission plus our 11k there won't be much left if we sold it for 175. Houses sit for a long time in the neighborhood & ours needs work.Comment
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That sounds reasonable, especially if your attorney is familiar with the local trustees. I would still go for consultations with another attorney or two to make sure they say the same thing.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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I have
I just have this fear and I don't think it will go away until this is done with. My attorney is one of the best in the area (and a real estate agent) so I'm crossing my fingers he is right
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