Does 2nd mortgage affect housing exemption?

[fedupw/ccdebt]

Am still in the waiting process to officially file but am still hoping wife and I can do a 7. We are wanting/needing to keep our house and am wondering if having a 2nd mortgage (which we do) might actually help when it comes to determining the equity/exemption issue?

Has anyone dealt with this before...especially in Indiana?

[HHM]

Yes, you calculate the 2nd mortgage when determining equity.

Equity = current fair market value - all loans secured by the home.

[fedupw/ccdebt]

Thanks for the reply HHM...that is what I thought. Will probably enable us to keep our house with no problem then, which is good news. It's not much, but it is ours and have been here for almost 17 years.

Unfortunately, am still waiting to file and trying to wait a bit longer...had some "things" come up that took priority. Had to have our air conditioner fixed (one of our sons has asthma and have had record breaking temps here in Indiana) and am going to have to have some repairs done on our roof (leaking in a spot and getting worse). Murphey's Law ya know...

[Boscoe]

Get all those household items fixed and done before you file. If any fixes are "pricy", like replacement of broken, drafty windows, take pictures to prove the replacement was necessary and not simply an "upgrade". Same for cars, any tune ups, new tires, brakes, service. Just use the reasonableness test.

Obviously, a new kitchen, 50 inch plasma, etc. won't fly, but you get the idea.