Thanks for the additional info.
1. can i file chapter 7? You can if your median income is not more than the average in your area. If it is greater than the median income, you can still file for Chapter 7 if your disposable income is not enough to pay down your unsecured debts. You can determine all of this using an online calculator found HERE.
2. can the second mortgage on house#2 come after me? Yes, the lender can either foreclose on the house, or sue you for a judgment.
3. do i have to pay tax on the different on forclosure? You’re referring to the deficiency (i.e. the amount still owed). The lender has two choices when there’s a deficiency: (1) It can sue you for the deficiency; or (2) It can forgive the deficiency and issue you a 1099. The 1099 is issued because the IRS considers forgiven debts to be income. So the answer is that you’ll have to pay taxes on the deficiency if the lender chooses to forgive that debt.
4. what was the debt forgiveness in 09' is there a law? That is a law that creates an exception to the general rule that you must pay taxes on forgiven debt. However, it only applies to mortgage used to buy a person’s primary residence. Therefore, it does not apply to houses 1 & 3. In other words, you’d still owe taxes on any forgiven debt from those houses.
5. when can i file for bk? You can file for bankruptcy any time you’d like, though you should read what I wrote below.
6. what can or can't do before filling bk, as far as purchess? With regard to the convenience check, that may be a problem. Simply put, you can’t charge up your credit cards and then immediately file for bankruptcy. That’s considered fraud. Therefore, the convenience check for $2000 would probably not be discharged in bankruptcy. In other words, you’d still owe the debt afterwards. The longer you wait, however, the less likely that is a problem. If I were you, I’d wait several months at the least.
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