Chapter 13 help...

What is the name of your state? TN

My parents are filing chapter 13 after my father had heart surgery and is no longer able to work. My mother has been a home maker and never really worked outside of cleaning homes and babysitting for most of her life.

I want to know if she includes her home, and both vehicles, will she be able to keep them? Because she can't afford to get another, and it's almost paid off.

Also, she co-signed as primary for a car for my younger brother, her attorney says she must include it, will he now be responsible for the payments even though she is the primary?

My parents are struggling to make ends meet on a small retirement check my father gets from the military and she doesn't see any way out, she's in over her head..

I am sorry this is so long, please help.

Confused

[Ladynred]

You have no choice in what to include, you must include ALL debts. People file 13 primarily to protect property, so yes, your parents can keep the house and probably both cars.

The vehicle she co-signed for must also be included and if that is discharged, then yes, your brother will be liable for the payments.

Thank you so much, my mother was very worried about that, neither of us know much about bankruptcy plans and before she filed, she wanted to be sure... sometimes lawyers don't explain everything in words we can understand.

Her attorney tried to get her to file chapter 7, but that would cause her to lose everything so I advised her against it. My dad is very ill, and just wants to stay where he is, as he doesn't have much longer to live.

Thanks again for your help.

[Ladynred]

Mind if I ask why you think your mother would 'lose everything' if she filed for CH 7 ? If you're referring to the house, and you said theirs is almost paid-off, then yes, the equity would be more than the puny amount allowed to those of us here in TN. In that case, CH 13 is the only way to protect and keep her home.

Yes, that's what I meant..as well as both their car and truck. The house is on 11 acres of land that has been paid off for years...but the house isn't worth what they owe on it. It's very old and very small and they've been in it for over 20 years. So, they don't want to take any chances at losing it.

I am however, worried that they have too many cars..because she co-signed for my brothers car and have two of their own plus the attorney made them include another car (which doesn't run well and is paid for)..they keep it only for a back up, but it's not very dependable and doesn't even have ac.

My mother is very sincere in wanting to pay all her debt, but just needs a little help. I do hope that counts toward something when she meets with the trustees..she only makes about 500 a month on her own.

Thank you for your help, I have read many of your replies and your own stories about the difficulties you are having...hope everything works out with the "move".