I know you didn't ask about this, but if you are not going to keep the condo, and if you stop paying the condo fees, you will remain responsible for the condo fees that accrue after a Bankruptcy is filed, and before the condo forecloses.
In any event, if you cannot file a Chapter 7 now, you will not be able to convert to a Chapter 7 later if your financial situation does not change, and you will be charged something- but probably less than $2250 - to attempt to convert.
I think this is what you wanted to know. If not, please let me know.Thank you!
1) What is the reason that you cannot file a Chapter 7?
2) Is the reason that your income is too high for a Chapter 7?
3) Is the reason that you are trying to hang onto the condo?
4) Is the condo underwater?
Is there more than on mortgage on the condo?
If yes, what is the balance of each mortgage?
A Bankruptcy - either a Chapter 7 or a Chapter 13 - can delay (for up to around 6 months), but cannot stop a foreclosure if you are behind on the mortgage payments. With a Chapter 13 you will be able to pay the $18K that is past due over the life of the Chapter 13 - up to 5 years. But you also have to pay the regular mortgage payment.
If you cannot pay the regular mortgage payment in addition to the monthly arrears payment, the mortgage company can foreclose even if you file a Bankruptcy.
Are you liable for condo membership association fees or dues, in addition to your mortgage?
If you file a Chapter 13 and complete the plan (continue to make the payments for up to 5 years), or get a discharge in a Chapter 7, you will not be liable for any deficiency judgment for the balance of the mortgage after the condo forecloses. You will also not be responsible for any taxes on the property or any income tax based on 1099-C debt forgiveness.
However, you will remain responsible for any association fees that accrue after the Bankruptcy is filed - whether it is a Chapter 13 or a conversion from a Chapter 13 to Chapter 7.
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