Are you asking if filing a Chapter 13 Bankruptcy can help you keep your house and your condo?
401K plans are exempt from the Bankruptcy estate. This means you would be able to keep your 401K if you file.
However, if you do file a Chapter 13, you would have to pay all disposable income (gross income minus taxes and allowable expenses) to the Bankruptcy court for 5 years. At the end of the 5 years, the balance of the credit card debt - but not the student loans - would be discharged, and also your liability for the balance of the mortgages would be discharged. However, a Bankruptcy will not remove first mortgage liens. This means if you stop paying either mortgage, the lender can foreclose.
I think this is what you wanted to know. If not, please let me know.Thank you!
Your liability for the entire balance of the mortgages will be discharged. This just means the mortgage companies cannot get deficiency judgments for the balance if you stop paying. It does not mean that if you do not pay the mortgage companies cannot foreclose.
In other words, if you do not pay the lenders can foreclose, but they cannot come after you for the balance of what is owed.
1) The balance on a second mortgage will be discharged upon completion of the 5-year Chapter 13 plan.
2) The difference is considered to be income, but is not taxable to the extent that the debtor's total debts are greater than his total assets.
3) I think you are referring to the tax relief for home owner's whose residence is foreclosed on. This would apply to a foreclosure of your home only.
4) There is nothing an attorney can do that you cannot do regarding your debt, except charge a lot of money.
The unsecured debt gets paid last, with whatever is left over after all allowable expenses, including child support and secured debts (mortgage payments). It is not uncommon for unsecured creditors to get nothing.
$2,000 is a reasonable fee for a Chapter 13 filing.
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