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Lawyer Says He Can't Help Me

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    Lawyer Says He Can't Help Me

    I entered a post before stating that my car has been repoed and that while I am behind on my house payments I have worked out an arrangement to catch them up. I am living on Social Security and am behind on all my debts.
    I talked to a local attorney and he says that since my mortgage balance is In the $50 thousands and the house appraises for $86 thousand that I can't file bankrupcy, What can I do? They say that the are going to get a judgement against me for the $26,000 still owed on the car which also includes a visa account which is with the same credit union.
    I told the lawyer that I didn't want to include the house in bankrupcy and he said that I didn't have any choice, Even though the house payments will be current before I file. Do I really not have the option to bankrupt?

    #2
    His comments might be because you have too much equity in your house to keep you within the exemption.

    If you get your house payments current, you can file BK (chapter 7), but the issue is with the equity exemption.

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      #3
      Mary

      My mortgage on my house was for $63,299.00 and I still owe $58,700.00
      Which means that I only have about $4,599.00 in equity, and the mortgage co. appraised the house at $83,000.00.

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        #4
        Equity is NOT the difference between the original mortgage and the present amount you owe, Equity is the difference between the current market value and the amount you owe.

        In your case, you have $24,300 in equity.

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