I have filed chapter 13 bankruptcy because my house is in foreclosure. This was a desperate measure but after recalculating my bills I really don't think I can afford to keep the house. I have not meet with the trustee yet, but I am thinking about converting it to a chapter 7 to get a fresh start because I am up to my ears in debt anyhow (about $30,000 not including the house) My husband is unemployed right now and we have 3 kids. So keeping the house would really push my budget to the limit for I don't make much money. I am not familar with how chapter 7 works? Will it discharge the foreclosure? or will I still have to pay for the house? Also, I have a car and so does my husband, his car is paid for mine is not (I am current on the payments) so how does this work in filing chapter 7? I live in the state of Texas if that helps.
2007-02-08 05:27:23 · 5 answers · asked by CSW 1 in Business & Finance ➔ Personal Finance
You are still responsible for paying your secured debts. Usually you will keep the same payments. Sometimes a 13 helps b/c it changes your payments. You will be required to pay if you want to keep them.
Talk with your attorney to see if a Chapter 7 is right for you and to see if you qualify. Since your husband is unemployed, this will help you on your Means Test.
Contact your attorney or contact your State's Bar Association for a referral.
2007-02-08 11:54:23 · answer #1 · answered by scboi23on24 2 · 0⤊ 0⤋
There are eligibility requirements for Chapter 7 and you need to find out whether you qualify.
Bankruptcy is an absolute last resort and If there is any possible way you could avoid bankruptcy then avoid it. You may be able to figure it all out yourself, but the new laws have made it much more complex and you may need help from an attorney to decide which way to go. An attorney might actually save you money because mistakes can be very expensive.
There's a website here which contains a lot of useful information. Here's one of the pages about Chapter 7.
Good Luck!
2007-02-08 10:45:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I have no real idea what you are up against. BUT from what I see, you need some place to live. Contact the creditor for the house and attempt a "DEED IN LUIE OF FORECLOSURE". This will preserve your credit, even if it makes you homeless.
Check on housing through governmental help, The $30,000 will be an asset to accomplish this. Enter into "Goodcredit.com", their program will help pay off the $30,000. Invest, starting in month ONE in a saving account money that will only be used to buy a house. Within five years you could have this mess turned around.
2007-02-08 05:44:31 · answer #3 · answered by whatevit 5 · 0⤊ 0⤋
just went thru Chapter 7 in Ohio and it filed in the court and I decided afterwards to add my car went to the attorneys signed a paper to surrender it and they added it to the bankruptcy so adding something is no problem, but i would think to change Chapters you will have fill out different papers and need to do it quickly...
2007-02-08 05:36:55 · answer #4 · answered by Renee 4 · 0⤊ 0⤋
Hey check out www.daveramsey.com. You can listen to him on the web. He is on right now.
2007-02-08 06:34:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋