Filing chapter 7 and keeping my house

lc04lc - welcome to the forums!

Your best bet here is to speak with a Bankruptcy Attorney. Most of them offer a free initial consultation in order to get your business - so you could write down all of your questions and have a sit-down with the attorney and get all of them answered.

Your income will be put through a "means test", which will determine if you are eligible for Chapter 7 filing. There are exemptions that vary from state to state for your house, car, etc. Only your Bankruptcy Attorney can tell you if you will be able to keep your house, by running the means test on your income/assets.

As far as the money required to file Chapter 7 - you'll have to discuss that with your attorney as well - some attorneys offer payment plans, some do not.

With a Chapter 13 filing, the attorney's fees are included in the Chapter 13 plan payments, and you only have to come up with the filing fees. And with a Chapter 13 filing, you CAN keep your home - the arrearages on your mortgage can be included in the payment plan, or you can continue to pay on it outside the plan. Chapter 13 is often referred to as the "wage earner plan" - it is basically a debt repayment plan, in which you pay pretty much all of your "disposable income" (determined by the means test) towards repayment of your debts over a 3-5 year period. It can be a good plan, if you are able to live on what is leftover after the plan payments are taken out of your check.

Please look into debt consolidation or settlement prior to filing bankruptcy - bankruptcy is a major step and will affect your credit for a very long time. I totally understand what you're going through - I'm a single mom myself and have been exactly where you are now.

Best wishes - keep us posted on your progress.

Thank you for the answer. I dont think I have a choice but to file for bankruptcy. I cannot afford to repay this loan and see no other way out. I went to the lawyer and she did the means test and believe me I fall under what I should be. I felt horrible though. I started to cry and I felt like a heel. I know I have no choice. But I dont want to lose the house. Even though it has no equity in it., I cant lose it now. What happens when I do file for bankruptcy. Does the house stay in my name. What is going to happen. What if by chance they fight me on this. I am scared and dont know what to do. Linda

It's okay - Many people have had to file for BK. There is nothing to be ashamed about. Life happens.

You can pay the filing fee in installments to the court. Your lawyer is another matter. For chapter 7 they usually always require that you pay before they file. They may let you make payments, but they wont' file until you are paid in full.

If your income is very low, you may look into legal aid in your area. Lots of places have clinics where law students and such work for free. That may be something to look into.

Linda - I can't really advise you on keeping the house, that's something your lawyer can explain much more accurately.

But the BK process? Cake. It's totally scary, and you will be worried about it, until it's over and then you will wonder why you stressed so much. The creditor's meeting is usually very simple. The trustee asks you some questions, you answer, that's it. As long as you are honest throughout the whole process you will be fine.

Listen to the advice given above. It is a piece of cake. If the lawyer you talked to already knows your situation they will probably put you on a payment plan. The lawyer I used did. He made sure that the filing fees were paid first and then let me pay him on a monthly basis. Now with the house, given your situation, is it really worth keeping it? But if you think you can afford the payments then your lawyer can reafferm ( I think that right) with the lein holder. That means that you will not put them in the BK and that you will keep making the payments to them. But talk to your lawyer first to see if that is really a good idea with your situation. My dad filed 3 years ago and he got to keep his cars and house, he just reaffermed those loans. Then he was scared to death about going to court. But I went with him and like Goudah stated, they just asked a couple of questions and then it was over and he walked out with a load off his shoulders. So don't feel ashamed a lot of people have had to file, it just happens. So keep your chin up, and just follow the advise your lawyer tells you.

Linda,

I sent you a PM.

Linda,

You can check your messages after you sign in, by looking in the left corner under the chat it will say if you have new messages or no new messages. Just click on that and it will bring you to your in box and then you can read your messages.