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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39020
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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My wife live in Ta. Fl. We are in the process of filing b.k.

Customer Question

My wife live in Ta. Fl. We are in the process of filing b.k. and are so confused about the chap13. We are filing because I had a loss in income and we have 5 invest properties that have tanked as well and we have 3 young children. Our attorney told us that we would qualify for a Chap 7 but would love to strip the 3rd mort. and keep our home. Also I was told that we could keep the one invest property that is not loosing money in a Chap 13. We pretty much break even on this one.Ok - heres our situation, our primary residence has 3 loans tied to it. First is with Chase Mort. we owe about $169k with a fixed rate of 5.25%. The second is with G.T.E. we owe $31k with a fixed rate of 5.75%. The third is a He -lock 3.9% int.only with Wachovia we owe $57k. $258,000 total and we are 7 mths as behind. I know I need an appraisal but if it comes back $200k or $235k since my first is so low. WILL I QUALIFY? How does this work? Zillow shows us $248k /Cyber Home shows $187 & in forclosure 6 days. HELP
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 7 years ago.

Under bankruptcy law applicable to Florida, you can only strip a mortgage, the last payment of which comes due prior to or coincident with the last payment of the Chapter 13 plan. In other words, your mortgage must have no more than 5 years term remaining. Similarly, with the investment properties, you must be able to pay off the stripped down loan entirely within the term of the bankruptcy plan.


This may be impossible given your reduced income.


Hope this helps.


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Customer: replied 7 years ago.

Im sorry but out of everything I`ve read and been advised I have never heard of anything like that. I just spoke to my investment partner yesterday before I posted my question and she herself filed chap 13 last year. She had her creditors meetingin August and her Conformation Hearing is schedule soon. For example her first mortg. $341k her second $85k. Her appraisal came in at $300k. She said that her second was stripped and she has a fairly low payment plan for the next 60 months. You didn`t answer the specific question I was asking for with the figures I gave you on my balances.


As far as my investment. I m not looking to get anything stripped. The question was can I keep it in a 13 if it is not loosing money? I have just began new employment and have budgeted our expenses that we could cover our payment plan. You