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FiveStarLaw
FiveStarLaw, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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Should we consider filing bankruptcy The mortgage is upside

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Should we consider filing bankruptcy? The mortgage is upside down we owe $248K & it is worth $211K and we have a second of $43K. We have an older high end RV that may be worth $20K now and we owe &45K, and no one wants it because of the diesel Gas prices. Storage plus payments and insurance on the RV are $800/mo. Good news is we have a good income but spread way too thin . After the economic disaster and the interest on credit cards went completely crazy, out of line, we used all of our liquid assets trying to keep up and finally had to turn over credit card debt to a legal firm for debt settlement, 3/09 and that is on going. My spouse is 72 & retired, and health is uncertain. His Income from retirement & SS combined is $3K. I still work and have about annual income of $80K. We have only $66K left in 401s & IRA. What would you suggest??????? Feeling deperate, and knowing these are not the golden years I once looked forward to. Dohdee
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  FiveStarLaw replied 4 years ago.
Hello,


Thank you for your question.

You might want to consider a chapter 13 bankruptcy to strip away the 2nd mortgage and then negotiating with the first mortgage for a modification.

Chapter 13 bankruptcy can strip off a junior mortgages if the first mortgage equals or exceeds the value of the property.

Customer: replied 4 years ago.
If we did a chapter 13 does that mean we pay back the debt? How is that figured? I could be dead long before I got it all paid back! You mentioned strip the 2nd how does that work? Do we have to go to court or does the attorney go? What would be an average cost for an attorney to manage this? Do families recover from bankruptcy ie re establish credit? Any advise about what we should do before filing? Just to avoid later saying "wish that I had known that or did that be for I filed? Thanking you in advance, Dohdee
Expert:  FiveStarLaw replied 4 years ago.
Hello,

If we did a chapter 13 does that mean we pay back the debt?
a portion of the debt would be repaid with your disposable income. The balance of the debt would be discharged at the end of the five-year period

You mentioned strip the 2nd how does that work?
the 2nd mortgage would be considered to be unsecured debt and any amounts still owing at the end of the five-year period would not have to be paid


Do we have to go to court or does the attorney go?
Both

What would be an average cost for an attorney to manage this?
$3500

Do families recover from bankruptcy ie re establish credit?
yes

Any advise about what we should do before filing? Just to avoid later saying "wish that I had known that or did that be for I filed?

retain counsel with experience


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FiveStarLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36607
Experience: Bankruptcy Lawyer. Experienced.
FiveStarLaw and 3 other Bankruptcy Law Specialists are ready to help you

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