ok, it's a last resort but an option that i have to consider. we have a home mortgage (1st and 2nd) and an autoloan. these are our only secured debts. our unsecured is what's killing us (about 37k). we're working on 3months behind at this point. anyway, i understand that ch7 will liquidate our assets and discharge the debts and ch13 is a 3-5yr payment plan for part of the debt. my question is what suits us better since we want to keep our home and the car. will ch13 make us pay the mortgage in 5 years? will ch7 make us sell our car and house to help pay off the debts? i've done some researching on the differences but i'm trying to figure out how it affects us. btw, i'm in CA. thanks, Deo
It depends. How much equity do you have in your home? How much equity in your car? What state do you live in? Generally, unless you have a lot of equity in your home, you'll be able to keep it, as well as keep your car. However, without knowing answers to the above questions, there's no way to give an exact answer. Also, since it sounds like you're leaing toward bankruptcy, I suggest that you visit a local attorney for a free bankruptcy consultation.
And, after paying your living expenses, how much money would you have left over to pay debt with? That can also make the difference between 7 and 13.
my mortgage balance is about 345K and my home appraised for 390K this past December. our car was just purchased 1.5 yrs ago brand new, so we really don't have any equity there. as far as income, we're in the red right now but that might slightly change depending on my wife's work situation. btw, i do have an appt to speak w/ a local BK attorney tomorrow. thanks...Deo
