Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Are you behind with your mortage payments?
Are the stocks set up as an IRA (tax deferred)?
Given the information your provided, I don't think a Chapter 13 Bankruptcy will help you. Filing a Bankruptcy cannot affect the mortgage payment. A Chapter 13 Bankruptcy can allow the debtor to pay mortgage arrears over a period of up to 5 years, in addition to paying the regular monthly amount. This is the main advantage of a Chapter 13.
Additionally, your non-IRA investments would be taken to pay your unsecured creditors.
Chapter 7 is for debtors who have little or no assets. In a Chapter 7, debts are discharged with the debtor paying little or nothing. With a Chapter 13, the debtor pays all disposable income to the Bankrutpcy court for 5 years, and after the 5 years most unsecured debt is discharged.
The exemptions are the same for both.
A Chapter 13 cannot force the lender of a first mortgage to adjust the payments. (Actually, Congress recently had the chance to change this, but voted against the change.) However, if the house is underwater and there is a second mortgage, the balance of the second mortgage can be discharged - along with the other unsecured debts - at the end of the 5-year period.
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