Chapter 7 vs. Chapter 13 Advice Needed

[luvtocrop]

Hello!
I was reading some of the posts here and joined the forum in hopes to get some answers. We are meeting with a BK lawyer on thursday morning to also discuss our options.

We have:
1st mortgage - $432,000
2nd mortgage - $55,000
(Home Value - $313,000)
2006 & 2007 Federal Taxes $6200 total
Student Loans $60,000
Personal Loans $17,000
Credit Card Debt $23,000

My husband has been laid off twice in the past 4 years. He is currently employed, and I run my own business. We have gotten into debt and cannot find our way out. With the house being so upside down in LTV, we thought we would look into BK as an option.

Any advise on what way to proceed?

[Flamingo]

First without posting in what state you reside, no one can give you any information. Also you do not list the amount of your income and how many are in your household. Your student loans are not deductible unless you can claim extreme disability and hardship and your federal taxes are probably also not deductible.

[JRScott]

Hello!
I was reading some of the posts here and joined the forum in hopes to get some answers. We are meeting with a BK lawyer on thursday morning to also discuss our options.

We have:
1st mortgage - $432,000
2nd mortgage - $55,000
(Home Value - $313,000)
2006 & 2007 Federal Taxes $6200 total
Student Loans $60,000
Personal Loans $17,000
Credit Card Debt $23,000

My husband has been laid off twice in the past 4 years. He is currently employed, and I run my own business. We have gotten into debt and cannot find our way out. With the house being so upside down in LTV, we thought we would look into BK as an option.

Any advise on what way to proceed?

The Taxes and Student Loans are non dischargeable in a BK, only tax debt older than 3 years can be discharged and student loans can only be discharged if you can prove significant hardship (such as being paralyzed, in a vegetative state, etc).

What is the nature of the Personal Loan, where they used for education as well? I ask because depending on the nature if they are actually student or educational loans those aren't dischargeable either.

The good news is that while in bk you can have student loans put into deferment, however you need to read your loan agreement and see how much deferment they allow in the lifetime of the loan.

What is the household income for the last 6 months?
How many people in your household?

[luvtocrop]

Income is about $112k/annual.
3 people in our household.
We live in California.

Personal loan (1) - secured by our car, loan was for personal use.
Personal loan (2) - unsecured, loan was for personal use.