Chapter 7 or Chapter 13...how much equity do I need to qualify?

[Itzshowtyme]

What is the name of your state? LA

I own a home with my two daughters (I am a widow) and there is equity in the house. If I file a Chapter 13 will the equity be divided into three equal parts (for myself and each of my daughters) and calculated on that basis? Or will the equity as a whole serve as 100 percent possession for myself? I guess what I am asking is do I quality for a Chapter 7 based on the entire equity, or only one third of it? Also, if I am on social security. If I do file can they use that as income for a repayment plan in Chapter 13? Thanks for the help.

 

[Itzshowtyme]

i am part owner of my home with my two children, one of whom is a minor and the other who is almost 21...there is a lot of equity in the home and i am asking if the equity would be divided three ways or counted as being solely my own in a chapter 13? any help would be appreciated...

 

[Ladynred]

Is the house DEEDED to the 3 of you ? Can just one of you sell the home w/o the agreement of the others ??

LA only allows 15K in equity as an exemption. If the home is deeded to the 3 of you, then your piece of that equity would be 1/3.

In Ch 13, it really makes no difference how much equity you have. In a Ch 13 you get to keep all your property. Not so in a CH 7, where you could stand a chance of losing the house to the Trustee.

I suggest you get 2 or 3 free consulations with BK lawyers and see what they tell you about the house.

 

[Itzshowtyme]

the house belonged to my husband and myself (their father) but he was killed in a car accident 8 years ago and i have usufruct of the home...my oldest daughter is 20 and my youngest daughter is 14 but neither of us can sell the home without written permission and/or consent of the other...does this count? would i only be liable for 1/3 of equity even in chapter 7?...thanks in advance for your help...

also, can they deny my motion to dismiss?

 

[Ladynred]

Sounds to me like you might only be looking at 1/3 of the equity as 'yours', but you really should confirm that with a lawyer.

CAN they deny your motion to dismiss - sure, they CAN. Will they - impossible to say, but I don't believe they can force you to stay in the plan.

You can find a template for a motion to dismiss a CH 13 here:

http://lawyerassistant.com/freeforms/

 

[Itzshowtyme]

is that the only form i need to file? MOTION TO DISMISS CHAPTER 13 ? also, how long do i need to wait to refile, if i choose to do so? thanks in advance for any help...

 

[Ladynred]

Yes, the Motion to Dismiss should be all that you need.

I *believe* the waiting period to refile is 6 months, the court will likely inform you of that.