How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2822
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
15345323
Type Your Bankruptcy Law Question Here...
Terry L. is online now
A new question is answered every 9 seconds

I have developed mounting financial problems ( high credit

Resolved Question:

I have developed mounting financial problems ( high credit card debt) as a result of protracted unemployment. My home has over 100K in equity. This is my only asset other than personal property and a few older cars. Is bankruptcy something to seriously consider???
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

You may wish to consider chapter 13 if you get back to work or have other steady income. Pennsylvania exemptions do not protect any equity in a home, (some exceptions if home is joint with a spouse) and the federal exemption which is allowed is just $21,625 to protect the equity. Therefore, chapter 7 is out, and leaves you with a chapter 13, whereby you would pay back debt over a 3-5 year repayment plan to protect the unexempt equity

Terry L. :

If you are back to work, then talk to a local bankruptcy attorney to review the equity, and help come up with a feasible chapter 13 repayment plan.

Terry L. :

Absent that, you can take an equity line and pay off the debt, or negotiate a settlement with them

Terry L. :

or, you can enter into a debt repayment plan, many non-profit's are there, check with the better business bureau for them.

Terry L. :

do you have any questions?

Customer:

I doubt any bank will consider an equity line with my current income of 350/week and a current mortgage of 1100/mo

Terry L. :

I understand. Best to see if you can work something out with your creditors. The chapter 13, to be feasible and approved, would need to show that you have enough left each month after all the monthly bills are paid to pay back the debts to protect the equity.

Terry L. :

best to work with the lenders or else a consolidation company.

Terry L. :

Thanks for your question, good luck

Terry L. and other Bankruptcy Law Specialists are ready to help you