Chapter 13

[takaris7]

What is the name of your state (only U.S. law)? Washington DC

I am seperated but married and own a home in Washington D.C. with a mortgage of 215,000 and a HELOC loan of 57,000
Seperate my income is about 57,000 but combined our income is 88,000.

I have a current credit rating of 596 and I am under a credit counseling firm to pay back an initial revolving debt of about 9,000 (but it now down to 2,300)

I also own a car. (Owe 22,000)

All my payments are up to date and I have not missed a mortage/HELOC/Car or credit counseling payment.

I had to change jobs and my income has not recovered. I use to make a substatial amount but my income was cut in half when I transfered jobs. (caused the debt)

While I was just working things out with the credit counseling and moderate payments to my HELOC loan...things have gotten out of hand.

The HELOC (a credit union mortgage) payment has increased from a workable 190.00 a month to 440.00 a month which is way above my budget.

I am sure you hear this alot and my story probably isnt the worst out there but I was wondering if there is anything I can do? Would a Chapter 13 be more workable than a Chapter 7 in Washington DC? I was told by a lawyer that I could not do a chapter 7. I didn't expect or stupidly forgot the larger payment that comes along with HELOC.

 

[despritfreya]

I. . . own a home in Washington D.C. with a mortgage of 215,000 and a HELOC loan of 57,000. . ..

How much is the house worth?

I am seperated but married. . . Seperate my income is about 57,000 but combined our income is 88,000. . . I was told by a lawyer that I could not do a chapter 7

Since you are separated, I assume your wife does not contribute to you living expenses. If that is correct, her income is not relevant. See 11 USC 707(b)(7)(B). You, however, are over median income for a household size of one (no dependents). Median income for one person in DC is, I believe, $49,427.00. However, all that means is that you must complete the means test, which would include expensing out both mortgage payments as well as either all or a portion of the vehicle payment, along with many other "allowed" expenses. Did that attny calculate the means test for you?

Des.