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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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While experiencing a moment of hope, recently refinanced home

Resolved Question:

While experiencing a moment of hope, recently refinanced home with all proceeds going to pay down credit card and consumer loan debt. Current house value 255K mortgage value 216K. I share ownership of home with one other person. She and I live in the home. Still can not find work and my only income is from SS disability. Still have one cc debt of about 18k that is reported on my credit report but is actually in my sons name. I am not on the account but have used it with his permission. Have car payment that is way above my means. Have exhausted all savings over the years of disability.

So, if chapter 7 how will the refinance be treated?
How will home be treated?
Will chapter 7 affect coownwer's credit rating?
Is chapter 13 better?
Is it better just to let it go with judgments, etc to follow?
Best course of action?

Out of work and hope PhD.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
do you want to keep the home or not?
Customer: replied 7 years ago.
Expert:  WALLSTREETESQ replied 7 years ago.
you can keep the home in a chapter 13, and the court will allow you to pay your creditors and any arrears over 60 months, the debts also can be reduced 50-90%, in a chpater 7 case you can keep the home but the equity, in VA the homestead exemption is Up to $5,000, but may be increased by $500 for each dependant residing on property, so in a chpater 7 because their will be some equity after using the exemptions, the trustee may force a sale to pay off your creditors.
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