house and Bk

[almost done]

What is the name of your state? NY

I am contemplating filing for bankruptcy as i have approx 60-70k unsecured debt, and am in the middle of lengthy divorce which is taking all my money.

im sure that there are a ton of variables, however, i am wondering if i will be able to keep my house if i file.

Typically speaking, do most banks allow you to reaffirm the mortgage?
Will the trustee force the sale of the house to pay off the bebt?

Any help greatly appreciated

[moburkes]

Yes, you can reaffirm your debt if you can afford the payments. Yes, you may have to sell it, if a forced sale will present enough cash to pay some debts. The house must have a good amount of equity, though.

But, without knowing all of the particulars, we can't give you adequate information.

[almost done]

Originally Posted by moburkes

Yes, you can reaffirm your debt if you can afford the payments. .

Well who makes the decision of "if i can afford the payments">? i am currently able to make the payments, and if all the debt gets forgiven, i will definitely be able to pay.

Originally Posted by moburkes

Yes, you may have to sell it, if a forced sale will present enough cash to pay some debts. The house must have a good amount of equity, though...

The house currently has a fair amount of equity, (roughly 75k) although half of it will have to go to the ex in the divorce. (32500) so there is not as much as there actually is

Originally Posted by moburkes

But, without knowing all of the particulars, we can't give you adequate information.

What other parameters are there? or is this something that would be better to google?
Again, not looking for specifics of my case, as obviously you dont know everything there is to know

[Ladynred]

Will the trustee force the sale of the house to pay off the bebt?

Yes, it is possible, especially if you cannot exempt ALL of the equity in the house. The NY homestead exemption is 50K, so if you truly have 75K in equity, then the Trustee will go after the house and he can even get his hands on it thru the divorce. Even though your share of that equity is only half, the Trustee can still reach the property.

It's also possible that the BK could hold up your divorce due to property settlement issues and vice-versa.

You REALLY need to talk to a bankruptcy attorney and explore the house issue very thoroughly. The only way you could protect the house is to file Ch 13.

[almost done]

Originally Posted by Ladynred

Yes, it is possible, especially if you cannot exempt ALL of the equity in the house.

What does this mean?

im kinda dumb with this stuff, and in general for that matter


i thank you all for your answers thus far


I just googled what you stated and it says that the NY homestead thing is 100k for married people, and seeing as i am still married, wouldnt this figure apply?

[Ladynred]

I just googled what you stated and it says that the NY homestead thing is 100k for married people, and seeing as i am still married, wouldnt this figure apply?

Only if you file a JOINT bankruptcy. If you file alone, the exemption is 50K - for you.

As for the exemption of equity:
you stated 75K equity, give or take
NY exemption is 50K
75-50=25K that is NOT EXEMPT - and a nice bit of cash to pay your creditors in the Trustee's eyes.

[JustAPal00]

I never understood why people would drive themselves to bankruptcy getting a divorce. If you had just agreed to split the assets when you started, even if she got more than half, you'd still have more then you have now! My ex was a real "PIG" but I wasn't dumb enough to fight that battle!

[almost done]

Originally Posted by JustAPal00

I never understood why people would drive themselves to bankruptcy getting a divorce. If you had just agreed to split the assets when you started, even if she got more than half, you'd still have more then you have now! My ex was a real "PIG" but I wasn't dumb enough to fight that battle!

Or perhaps it was not me that drove myself to bankruptcy during divorce, but my STBX. i have made every attempt to split anything, i have offered everything, but some people just wont be amicable.

Perhaps that the Ex is the one being the "PIG" and i have no control over it.

Perhaps someone else is behind the wheel. ever think of that?