I live in NJ. Talked to a few lawyers, they all want to charge $1500 for a CH7 and $3500 for a CH13. However, they all disagree on how to go about it. One says file a 7. Another says 13. And yet another says do a 20(7 1st, 13 next).
My house has been in foreclosure for 2 years. I don't want to keep the house, I moved out last year. There is a tax lien on it also. IRS wouldn't remove it no matter what(their words), so I gave up on trying to short sell it and moved. I owe the IRS about $100k, and credit cards and unsecured credit lines come out to about $70k. About 80% of what is owed to the IRS came in the last 2 years, so I know they can't go away in a bankruptcy filing. I currently live with my parents, but they're eager for me to go, and so am I
After monthly expenses, I have about $1400 left over each month. But that's because I don't pay rent or a mortgage for now. The only asset worth much in my name is my car, worth about $6k.
1. Will the bankruptcy court look at the $1400 and say, that can all be paid to creditors, or will they consider that a good chunk of it will be needed to pay rent & utilities when I find a place and move out? Or do I need to find a place first, then file?
2. Is a 7 or 13 or even a 20 best for me? I understand the taxes won't get erased no matter what. One lawyer said under a 13, most or all of what I pay to the trustee will just go the IRS since they are the biggest creditor. What do you think?
Thanks!
My house has been in foreclosure for 2 years. I don't want to keep the house, I moved out last year. There is a tax lien on it also. IRS wouldn't remove it no matter what(their words), so I gave up on trying to short sell it and moved. I owe the IRS about $100k, and credit cards and unsecured credit lines come out to about $70k. About 80% of what is owed to the IRS came in the last 2 years, so I know they can't go away in a bankruptcy filing. I currently live with my parents, but they're eager for me to go, and so am I
After monthly expenses, I have about $1400 left over each month. But that's because I don't pay rent or a mortgage for now. The only asset worth much in my name is my car, worth about $6k.
1. Will the bankruptcy court look at the $1400 and say, that can all be paid to creditors, or will they consider that a good chunk of it will be needed to pay rent & utilities when I find a place and move out? Or do I need to find a place first, then file?
2. Is a 7 or 13 or even a 20 best for me? I understand the taxes won't get erased no matter what. One lawyer said under a 13, most or all of what I pay to the trustee will just go the IRS since they are the biggest creditor. What do you think?
Thanks!
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