Yes! Chapter 7 if we can. The problem is that in February he will be getting paid for past work and in March will have some real estate money coming in. Also, don't they look at income for the past year? Last year he had a couple of very good months of income. We want to keep our home.
Can I go ahead with paying off the second? The court won't come back to us and want that money back?
About $230,000. So with the 2nd we owe more than it's worth. But if we pay it off we will have some equity. Should we file before we pay it off or after? I didn't think we could pay off the 2nd after we filed.
We really want to pay it off since they are offering such a great deal. And the offer is only good till the end of this month.
But if we wait 6 months my husband will be showing income from real estate and his consulting. Over the next 6 months he may make (unsure if all the deals will go through) close to $25,000 gross. This money will enable us to live from month to month. But the hugh debt is killing us. That is why we want to file now.
What if someone gives us the money and we use it for the second. What would the court say then?
For two people the MN means test is $5,199 per month or 62,384 a year, I still think you can do this. Also, any creditor that is paid 6 months prior regradless by who could be an issue.
2 person household
Avg. Monthly Income (past 6 months) $5,199 per month
6-Month Total: $31,192
Real property, mobile home or manufactured home to $200,000 or, if the homestead is used primarily for agricultural purposes, $500,000; cannot exceed ½ acre in city or 160 acres elsewhere
550.37 subd. 12
Accident or disability proceeds
Earnings of minor child
550.37 subd. 15
ERISA-qualified benefits needed for support, which do not exceed $48,000 in present value
IRAs needed for support, which do not exceed $48,000 in present value
Private retirement benefits (only benefits building up)
550.37 subd. 24
550. 37 subd. 24
Appliances, furniture, radio, phonographs & TV to $7200 value
550.37 subd. (4)(b)
AFDC, supplemental assistance, general assistance, SSI/SSA
550.37 subd. 14
Tools of trade
total tools of trade (except teaching materials) can’t exceed $13000
Farm machines, implements, livestock, farm produce & crops of farmers to $13,000 total
550.37 subd. 5
Earned but unpaid wages, paid within 6 months of returning to work if debtor received welfare in the past
Motor vehicle to $3200? I lease my car which is a 2009 Altima worth probably $18,000. What will happen to my car if we file?
What about Chapter 13? On average, what percent of the $90,000 would we have to pay back in 5 years? And in that case we would have to show that we have the income to make the payments! I think we are screwed.
Wow. Do you mean that if the 1st and 2nd combined is more than the house is worth, then the 2nd could be turned into an unsecured debt? Is that the test?
And as far as reducing the unsecured debt, will the decision be based on the income for the last 6 months?
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