Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) How many are in your household?
2) What is the total household monthly gross income?
One, just me, in the household.
Monthly gross income is about $3,000, although it changes monthly. Last month I only made $1,400, but the month before I made $3,000. I've been told by my boss that things don't look good for the near future. Our work has been declining for the past couple of years. I've been lucky that people who have owed me money for work that I did a couple of years ago are now paying me which is why, I think, I'm getting checks that are in the $3,000 range. I don't know how long that will last. I spent the last 30 years taking care of my mother who had Alzheimers which is why my credit cards got so high. But there was no way I would put her in a nursing home. She was too good to us kids growing up, it was the least I could do for her.
Last questions - what is the current market value of your home?
How much is your mortgage payment?
How much is your HE payment?
Unfortunately the market value is $115,000 right now.
Mortgage payment is $1,900.
HE payment is $685
Since the value of your home is less than the balance of the first mortgage, the HE loan will be treated as an unsecured loan.
Your monthly Chapter 13 payment will be your disposable income, which you will have to pay each month for 3 years. At the end of the 3 years, the balance of the HE loan can be discharged, along with the rest of your unsecured debts.
Your monthly payment - your disposable income - will be your gross income minus allowable expenses, such as your first mortgage payment, living expenses, car expenses, etc. Whatever is left - regardless of how much - is what is paid to the Bankrutpcy court.
I think this is what you wanted to know. If not, please let me know.
Thank you for accepting my answer! And thank you for the bonus!
Yes - for determining the Chapter 13 monthly payment, the Bankrutpcy court takes into account all of your income, including retirement income.
Sorry to hold you up but I have two more questions. 1. If I filed a Chapter 7 instead of the 13 and gave up my house would I still be paying the bankruptcy court for years? 2. I am Power of Attorney for my brother and I have joint accounts with him. Is this going to be in jeopardy?
Does the money in the joint accounts belong to both of you, or only to your brother?
1) If you file a Chapter 7 instead, you would have no monthly payments at all, and the entire process would take only around 6 months instead of 3 years.
2) If the money belongs to your brother only, even though the accounts are also in your name, the money in those accounts cannot be touched by the Bankruptcy court.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).