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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Hello, Okay here goes........We need to file for BK. My wife

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Hello, Okay here goes........We need to file for BK. My wife and I, in the last 6 months made 68,000, information straight from our paystubs. We owe 147,000 in unsecured debt! And 1,061,000 on our home as of to date.
Can I do Chapter 7? And if not and i have to do a Chapter 13 can i still stay in my home I have been in for 16 years? I just got a modification approved yesterday for 3863.00 and this includes property tax and insurance. will they let me stay in my home and pay my creditors whatevers left? Or will the court ask me to Find a cheaper home so that i can pay my creditors?

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

You may want to consider a chapter 13 bankruptcy in order to retain your home and set up a payment plan for your creditors. I will explain.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for California:

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.
Customer: replied 6 years ago.
Okay. Do You think I would qualify for a chapter 7
It does not appear that you would qualify for chapter 7.

In order to file a chapter 7 bankruptcy, you must pass a means test that compares your family income with the median income of the family of the same size in your state. If you are at or below the median income, you pass the means test in are eligible to file a chapter 7 bankruptcy. If you are above the median income, you must pass an additional test which compares your disposable income and unsecured debts.

The median income in California for a family of two is $62,690. The median income for family of 4 is $77,014.

Customer: replied 6 years ago.
Thank You, one more question please. My wife had a court date and she missed it. it was for a creditor taking her to court. now she has received a letter in the mail and it is a Judgement that was entered and she has to pay 2500 to this creditor plus interest etc.
Does filing a BK at this point stop this judgement ????

J.A. policy requires that you start a new thread for a new question. However I will answer this question.

The bankruptcy at this point will stop the judgment
Ellen and 2 other Bankruptcy Law Specialists are ready to help you