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Ask cfortunato Your Own Question
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Im considering bankruptcy

Customer Question

I'm considering bankruptcy
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

HI JACustomer,

What is your legal question, please? (What would you like to know?)

Customer: replied 6 years ago.
how do I find a free or low cost bankruptcy attorney and is bankruptcy my only alternative?
Expert:  cfortunato replied 6 years ago.
How many mortgages do you have? Are you current with the mortgage payments?
Customer: replied 6 years ago.
my regular mortgage and an equity line of credit, have been working with the bank on the modification of the first, the equity is current.
Expert:  cfortunato replied 6 years ago.

If you file a Chapter 13 Bankruptcy, you may be able to eliminate part of the second mortgage, but will still have to pay the first mortgage if you want to keep the house.

If you don't care about keeping the house, you can file a Chapter 7, which will eliminate the liability for most debts, including the mortgages, but you would not be able to keep the house if you don't pay the mortgages.

Customer: replied 6 years ago.

so with the chapter 7, as long as i pay my mortgages, I can eliminate most of the other debt and still keep my home. I just want to make sure I am understanding correctly.

I am also on my mothers bank accounts. would I have to be taken off of those so she's not affected? I have the deeds to 2 timeshares as well, what would happen to those?

Expert:  cfortunato replied 6 years ago.

Do you want to keep the timeshares?

Is there any equity (the difference between the market value and the balance on the mortgage) in the timeshares? If so, how much equity?

Customer: replied 6 years ago.
Yes, there is equity in the 2 that I own outright. I have a third I'm paying on, but don't care if I lose that one. Just having a hard time making the maintainence and taxes which come to about $2000 a year with all 3. About 1200 for the 2 I own. I would like to keep the ones I own or at least one of them.
Expert:  cfortunato replied 6 years ago.

Ironically, if you file a Bankruptcy (either Chapter 7 or 13), you would only be able to keep the timeshare with no equity, as the Bankruptcy Trustee would want to take the ones with equity and sell them to pay your creditors.

You would also be able to keep your house if you file a Bankruptcy - if you keep paying the mortgages.