Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification
Is the home in her name?
How much equity is in the property?
Yes, the home is in her name. We bought it during the "boom" and now she is underwater. So no equity in that regard. But she would like to stay in the home if possible.
Texas bankruptcy exemption scheme allow the debtor to exempt such real estate and personal property as:
She can keep the home, as long as the mortgage is paid,
A bankruptcy would be her best bet,
a bankruptcy would wipe out her debts, and she would be able to keep most if not all her personal items.
How much would it cost to start that process & how long would the process take?
In TX expect $600-$1200 for an attorney,
If she uses a petition preparer they may charge $200 or less
the Court fees are $350 with the certificates required,
It will take a few weeks to file, but once she files, all creditors have to stop calling her.
Could you point me in the right direction. I plan on paying for all fees, but my husband and I are limited in our funds with two small children both under three years of age.
She can also list the mortgage, and wipe that out as well,
Where in TX does she live?
Fort Bend /Houston. I don't understand. How do you list the mortgage, but keep the house?
It is risky, but in this market if she lists the mortgage, she can live in the home by keep on paying the mortgage, the lender many times may renegotiate the payments as well,
but many times she discharges the debt, and lives their by keep on paying the mortgage payments,
NO Filing over $100. Same day Service Available. We are a Debt Relief Agency providing services under the Federal Bankruptcy Code. We assist with Chapters 7 & 13. Call Today(NNN) NNN-NNNN
So she still owns the home? Or is it like she will pay rent to stay in the house? Or will they renegotiate the payments adjusted to the actual cost of the condo?
The link above is a list of attorneys and petition preparers who will charge a low rate
So you are in Houston, and You can do the filing for me?
The home issue is complicated:
1. Her name will still be on the deed
2. the mortgage would be discharged
3. Most often if she pays the mortgage payment she would be able to stay
4. If she does not pay the payment in the future, the bank can foreclose, but cannot sue her
5. The bank may even renegotiate the mortgage payment to a lower amount,
I am not allowed to represent customers here,
A good attorney may be able to negotiate a lower payment with the bank, as the bank would face the threat of being discharged in a bankruptcy
If you have any further questions please do not hesitate to ask
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It sounds risky! Can we still file for bankrutcy without listing the house, and keep the home in place? Is that the best course to take?
You can leave the mortgage out of it,
If there is nothing more you can think of regarding this I'll sign off now! You have been most helpful. I will rate your assistance very high up! Thank you!
In terms of her situation, I would look at the lawyers I linked above for your area, and discuss her options,
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