I get that if your state has a homestead exemption you can exempt a certain portion of your equity when you file. But, if you live in a state that has no homestead exemtion, like I do, or if your equity surpasses the homestead exemption, then what? Are you forced to take out a line of credit on your home to pay off your creditors before you can file bankruptcy? We have used our line of credit to pay off some of the loans, I had been told repeatedly this was a bad idea but we needed to get the payment down. It seems now that we could not have been forgiven that portion of the debt through filing bankruptcy anyway. Is that correct?
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Don't worry about a thing
'Cause every little thing gonna be alright - Bob Marley -
Couple of questions first....is your name the only one on the house deed and mortgage (or mortgages)? Which state do you live in? How much equity do you have in the home right now?Originally posted by goingout View PostI am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to go -
The mortagage and HELOC are both in DH's name but we are both on the deed. He will be filing and I will possibly be filing with him. We are in Maryland. With the HELOC we have no equity left and I suspect we could not sell for what the mortgage and HELOC are together.Don't worry about a thing
'Cause every little thing gonna be alright - Bob MarleyComment
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I'm in a similar situation. We had about $30,000 in equity in our home and refinanced to take the money out three years ago. Now the equity is gone and I think we will have to file for bankruptcy now. Basically, the HELOC kept us afloat for a few extra years. I'm in NY so I think if we would have more than $10,000 equity, we may have lost our house. I think you'll be able to keep your home if there is no equity in it.Comment
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Generally speaking, the equity you have to cover with your Homestead Exemption is,................ Fair Market Value, less reasonable costs to sell, less mortgage(s). Any surplus remaining is your equity you'll need to protect with your Homestead Exemption.
It's not a straight up,........... The house is worth $200K, you owe $150K in mortgages, there fore you have $50K in equity. Costs to sell include Realtor's fees, prorated tax payments to the buyers, doc fees, associated seller's costs that are typical for your area. The Trustee has to pay those costs too.
Just a rough guesstimate, figure 10% of the FMV of the house in costs to sell.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Originally posted by Lindsay View Post
So I guess that's one good thing. Now could we still file chap 7 and keep the house? I keep reading that chap 13 is where you would keep the house?Don't worry about a thing
'Cause every little thing gonna be alright - Bob MarleyComment
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If you really have no equity in your home, there are no other legal "ties" on the house, only the people filing are on the deed and mortgage, and your mortgage payments are up to date, then if you qualify for Ch 7, it's likely you can keep the house if you file Ch 7.Originally posted by goingout View PostI am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to goComment
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Ch 13 is the BK solution available for people behind/in arrears on their mortgage payments.Originally posted by goingout View Post
You have to be current on your mortgage in order to file Ch 7 and keep your home.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Oh thank goodness. That was the one thing that really scared me.Originally posted by SinkingFast View PostDon't worry about a thing
'Cause every little thing gonna be alright - Bob MarleyComment
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We are in Maryland. With the HELOC we have no equity left and I suspect we could not sell for what the mortgage and HELOC are together.
Why would you want to keep the house if youi're underwater in the mortgages.
BK is about a fresh start. Don't jeopardise the new beginning by reaffirming something that is not an asset.Comment
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We could probably make the payments if we got rid of all our other debt. Plus we really do not want to lose this house.Don't worry about a thing
'Cause every little thing gonna be alright - Bob MarleyComment
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