Will Appreciate Any Information

[lrprn]

...which you can exempt using the federal exemptions.

Sorry, Boscoe - Missouri is *NOT* a state that can use federal exemptions. For the 15 states than can select their state or federal exemptions, see http://www.bankruptcyinformation.com/fed.htm'

Harry49, in Missouri using your exemptions you can only protect $15,000 home equity - http://www.bankruptcyaction.com/moexemptions.htm . Since the home is paid off and you own a fourth of a $90K house, you have more equity than you can protect if you file. Your trustee may require that you pay him/her your share of the equity above $15,000 to keep the house.

Also the fact that only you are living there and the house is paid off *might* make the house more attractive for the trustee to seize and sell, pay your three siblings their quarter shares, give you $15K in cash, and keep the rest for your creditors. Unfortunately this depends completely on the trustee you are assigned if you file.

You need expert legal help from 3-4 bankruptcy lawyers in your area who are familiar with how the trustees handle situations like yours to know what the best options are for you in the long run. Most bankruptcy lawyers give initial free consultations. Start making those appointments! And keep asking questions here - we'll help you sort things out as best we can. Welcome to BK Forum!

[Boscoe]

Maybe not.

First off, is it really worth $90k? The market is bad and falling most everywhere. Find a realtor who will do a comparative market analysis on your property, taking an approach of "what price would we need to list it at to sell in the next 90 days?"

I bet it might be less than $90k, say $80k. If that is true, the bk trustee is only bankrupting you, so that would be $20k of your equity, which you can exempt using the federal exemptions. It was $18,450 per person, but I know they just raised it, and I believe raised it over $20k per person. One of the Guru's on this site can find the exact amount.

Assuming this is true, it would not be worth it for a trustee to go after the house. If you owned it 100%, yes. But since you are only 25% owner (and you say you can prove this, which you will need to do), then you may be ok.

[harry49]

The house is worth appx 90,000 and is paid off.

[harry49]

"Questions on the house: What % owner of it, are you, and can you prove this? What is the house worth and what debt (i.e. mortgage loans and/or home equity locans) is outstanding against it? If the difference, or equity, "is not too large, you should be ok."

I own 1/4 of the house, and live here. If I bankrupt, will we lose the house? I am in Illinois.

[Boscoe]

$26k in debt with $28k in income? Hate to say it, but I don't see anyway, short of winning the lottery or getting a big check from a relative, you are going to be able to pay this off in your lifetime.

The entire amount of the debt will go away and you will have a fresh start through a bk, assuming you go this way.

Questions on the house: What % owner of it, are you, and can you prove this? What is the house worth and what debt (i.e. mortgage loans and/or home equity locans) is outstanding against it? If the difference, or equity, is not too large, you should be ok.

But, you should meet with a few lawyers (at least 2-3) and tell them your story. Most all do initial free consultations.

Assuming you can exempt your portion of the house, you should be able to do all of this without losing any assets. And do NOT worry about paying the debt back. I am sure the cc companies have made plenty from you in interest over the years.

[JRScott]

What state do you live in?
What was your income the last 6 months? (not your expected yearly but the last 6 months)
How many in your household?
What is the value of the house? How many joint owners are there?

As for reducing your debt you might could try to settle the debt for less than what it is worth. This is typically best done with smaller debts as you will get a 1099 for this year from them if more than 600 dollars is forgiven.

The bankruptcy question I need the info above....

I would however recommend that you speak to 3-4 Bankruptcy attorneys in your area. Most will offer an initial free consultation.

[harry49]

1. I am 26,000 dollars in credit card debt due to medical bills, the expenses from not working for 2 years, and money lost to gambling.

2. I work now and make appx. 28,000 per year.

3. I live in a house that was my mother's (deceased) and now jointly owned by myself and my brothers and sisters (do not live here).

I am 57 years old.


What are my options to reduce my debt? Is bankruptcy an option for me and how does my shared ownership of the house I live in effect that? I absolutely intend to pay down my debts but I know I am getting into a serious danger zone.

Anyone have advice for me.

Thanks.