I cant afford to keep my house what is better chapert 13 or chapter 7?
Selling my house is not a opt. So hoe will chapter 13 or chapter 7 affect me?
Selling my house is not a opt. So hoe will chapter 13 or chapter 7 affect me?
Technorati Tags: chapter 13, chapter 7
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If you file a chapter 13 BK, you will be able to keep your house, and the amount that you owe will be paid back in smaller increments over a period of 3 to 5 years, however, you will have to maintain your current payment on the house as well as the arrearage.
If you file a chapter 7, depending on what state you live in, you will lose your home. I know that Texas and Florida are exceptions to that rule, however I do not know about the bankruptcy laws and housing in other states.
That’s pretty much the skinny on it.
-Em
July 25th, 2010 at 7:00 amA "FOR SALE" sign!
July 25th, 2010 at 7:00 amseek reliable financial advice. a chapter 13 stays for 7 years in your credit report. a chapter 7 for 10.
you may want to check this out:
http://www.ftc.gov/bcp/conline/pubs/credit/repair.shtm
July 25th, 2010 at 7:00 amSorry about your problems. A lot of people in Florida are in the same situation you’re in due to our high taxes and the housing slump we’re now in. So many people bought when the prices were high and now they’re stuck paying higher mortgages from their adjustable rate mortgage and a house that’s no longer worth what they owe. Have you considered contacting your mortgage office and explaining to them your financial situation? A lot of them are willing to work with you because they’d much rather have you keep your house than having to foreclose. Chapter 13 and Chapter 7 will affect you for years. When I stopped working almost two years ago, we stopped eating out with the exception of maybe twice a month and we stopped using credit cards. We now use our tax refund each year to pay off bills instead of spending it. Call your credit card companies to see if they can lower your interest rate or consider joining one of those companies that work with your creditors to reduce your monthly payments. We did this one time when my husband was transferred to a different city with his job in the Marines and we lived in such an isolated area that I couldn’t work. Our income dropped drastically and we still owned our house in our previous state that we were renting. Please consider all of your possible options before you decide to file. It’s a lot harder to file now and it’s possible you’ll be denied anyways. I wish you luck and hope for a better year for you to come.
July 25th, 2010 at 7:00 amContact your bank/mortgage company or your creditors. They will work with you because they don’t want to have to sell your house either and your creditors just want to get paid eventually. Work out a payment plan with them.
Bankruptcy is never a good option and with the recent changes in the Bankruptcy laws, it’s probably not in your best interest.
July 25th, 2010 at 7:00 am