We had filed chapter 13 last October. The payments were so high we just couldn't make the payments. The bankruptcy courts dismissed our case for non-payments. Are we eligible to file for chapter 7? Will we lose our home? We live in Ohio if that makes any difference at all. What should we expect to happen?
2006-12-22 17:37:06 · 4 answers · asked by jimsusierickard 1 in Business & Finance ➔ Credit
You can file a chapter 7 if you have not filed a chapter 7 within the last 8 years.
2006-12-23 02:12:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I converted my ch 13 to a ch 7. almost a year after my 13 was dismissed for non-payment. As far as your home, you are no longer protected and are at the mercy of your mortgage company. You are allowed to exclude it as well as a vehicle. But it has been 8 yrs since I did it and from what I hear the new laws Bush has put in force chapter 7 can't be filed anymore ONLY ch 13. Call an attorney and hurry before anybody files a foreclosure - GOOD LUCK I have been in your shoes and I know how you feel.
2006-12-22 18:07:53 · answer #2 · answered by rd_kill09 1 · 0⤊ 0⤋
Yes, you should be able to file a chapter 7. The bankruptcy laws have changed recently so there may be some extra hoops to jump through to show the courts why you could not afford the chapter 13 payments. It is possible to do though.
Chances are high that you will be asked to turn over your home. If you could not afford it under chapter 13, you will not be able to afford it under chapter 7. You will probably have to let go of any vehicles that you have loans under as well.
If you go through with the chapter 7, I would suggest that you start looking for a home to rent (that you can afford to make the payments on without any stress to your financial situation) before you committ to the chapter 7. You will be able to get you (and your children ?) settled into a new home without the "horror" of having to be foreclosed on and leave that way. It would be a much smoother transition for everyone.
My suggestion would be to go ahead and contact a lawyer to get the paperwork started as soon as possible. It would be easier to start all over (it will take a while for you to get back on your feet) than to try and save your home by struggling week to week.
You will need to sit down and be serious about the money you have coming in and what you are spending. There may be a chance that you could save your house if you can get a budget in place and stick to it. NO extra spending, only necessities for a while. You really need to start doing this anyway to get your self ahead a little!
Contact your mortgage company and explain to them what your situation is. They may be able to offer you a plan to help get your payments back on track! You may be eligible for a short sale (sell your home for less than you owe but gets the house out of your hands) or some other type of plan that they offer.
Contact your other debtors and see if they can help you as well. Just remember that if you set up these arrangements...you MUST be able to follow through with them!
Good Luck with everything!!!
2006-12-22 17:59:06 · answer #3 · answered by Older Sister 4 · 0⤊ 0⤋
If your new bankruptcy is filed within 1 year of the filing date of the previous bankruptcy, this can lead to the early termination of the automatic stay under certain circumstances. Your current eligibility for bankruptcy will also depend on your current financial status and the application of the means test. You really need to consult a local bankruptcy attorney to discuss your options.
2006-12-26 12:06:07 · answer #4 · answered by Carl 7 · 1⤊ 0⤋