Am I ready for Bankruptcy
I don't want to lose the house
Here is the deal, I live in the San Francisco Bay area I have a one bedroom Town house I owe 100K it is worth 200K I have 30k in credit cards I took out 25k out of my 401k to repair my house I still have 35 in my 401k
My fico score is 759
House payment 659$
hoa 175$
Property tax 100$
cable internet 80$
pge 30$
car insurance 100$
cell phone 50$
Gas to work month 150$
Credit card 600$
Before 401k loan would take home 2200$$ a mounth now I am only taking home 1300$ iam still contribuing 6% to 401k
I do not think my job will last the year. What do you think is the best way to go about this Will Bankruptcy do anything for me I want to keep my house I am not worrierd about credit cards anymore I just want to get rid of this dept.
Firstly, since you are earning sufficient to take home at least
Firstly, since you are earning sufficient to take home at least $1300 a month, I don't think that you can qualify for Chapter 7 bankruptcy.
Secondly, it is very rare that a creditor will foreclose your property to recover credit card debts. In fact there are certain state like Texas, which prohibits creditors from seizing primary residences.
Thirdly, if you file bankruptcy under Chapter 13, your can keep back your house, because you are required to pay off the entire outstanding debt within a 3 to 5 year period. Moreover, if you are regular with your mortgage payments, your house will not be foreclosed.
You can always consult w/ an attorney to find out if you qualify
You can always consult w/ an attorney to find out if you qualify --- I bring home 2212/mo (41,000/yr) and live in VA and qualify for a chapter 7... in CA it is
California $49,182 (1 earner) $65,097 (2 people) $70,684 (3 people) $79,971 (4 people). (http://www.justice.gov/ust/eo/bapcpa/20090315/bci_data/median_income_table.htm)
I believe even in a 7 you can keep your home if you reaffirm the morgage... I would talk w/ an attorney to see what options you have.
