1)my question is if i file a Chapter 13 (repymt plan) can they touch my personal residence that has a lot of equity?
A: California has a complicated homestead exemption law, which provides from $75,000-175,000 in equity protection to a debtor in bankruptcy, dependent upon the debtor's particular circumstances. See Code Civ. Proc. 704.730
(scroll down to section .730).
If your property has more equity than can be protected by the homestead exemption, then the bankruptcy trustee
can order the property sold to pay your unsecured creditors, which would include the lender on your investment property, to the extent that your debt secured by the property exceeds the property's fair market value.
However, you can propose a bankruptcy plan that would catch up all of the payments on the investment property during the Chapter 13 plan, and thereby avoid a sale of your principal residence. The key question is whether or not you have sufficient income to pay your various debts during the course of the plan. If you do, then you're in good shape. Otherwise, your home could be sold to cover the difference.2) my 2nd question is if my bankruptcy is dismissed because i dont qualify will they still show up on my record as a bankruptcy? i heard i wont be able to reapply for another 180 days!
A: A subsequent bankruptcy filing which occurs within one year of the date of a previous case was dismissed, results in the automatic bankruptcy stay terminating 30 days after filing of the second bankruptcy case. So, there is no rule preventing you from filing within one year, but you will not have the protection of the automatic stay
, unless you obtain an order from the court based upon good cause showing why the stay should not expire. Bankr. Code
Please let me know if I can clarify anything or provide further assistance.
Hope this helps.