Equity

[gisvc]

What is the name of your state?What is the name of your state? Missouri

My husband and myself are considering filing chapter 7. The problem is we are buying our house and own our car we are told that since we might have equity in them that if we file Chapter 7 we would lose our house and car they would force us to sell it. We dont want to lose our house or car. But we honsetly cant afford to pay on a house that he lossed in a forclosure (which was due to a deceased wife) What might our options be? Could we not reaffirm them and keep both of them? If we lossed our only house what would we do?

GISVC

 

[rimi2001]

Hello,

We are going through the same problem right now. You can read my thread and read what others have written to me. I just replied since I did some homework the last couple of days.

We do not make enought money to pay on another bill such as a chapter 13 and we may not qualify for a chapter 7, so what do we do???

Read my post to get an idea of what you need to look at and you may be able to lower your equity amt. like I did. Is your state exempt up to a certain amt? What is the walk away price on your home? Does your home need fix ups? What would the sellers fees be if you sold the house? All of this will subtract from the equity amt to lower it. In my state of La. we are exempt up to 25k. I got our equity down to 19k. So we may be ok there.

For the car situation, if if is over 7,OOOk and you may have a problem and may need to file a chap 13. But I am not sure on that.

Good luck with everything, this is some major headache producing stuff!!

 

[bigun]

Rimi is correct. Here are Mo's. exemptions,
http://www.thebankruptcysite.com/bankruptcy-exemptions/missouri.php

What sort of equity do you have in the car and home?

 

[gisvc]

As far as equity: We owe $49,000 and it appraised at $89,000. Then we own a 1999 Ford Expedition that is paid for. THey said the value of that is $9000. So I dont know. We thought about just refinancing our house but no body will loan on it because it is a manufactured house. Our credit score is low because my husband had a forclosure and I had a judgement against me. We are due to talk to a lawyer tomarrow to see what our options are. We thought about having my parents put a lien on the house since we owe them alot of money also, then we were told we couldnt. I guess just wait and see what happens tomarrow.
Thanks for the advice if you have any other ideas or answers please let me know.

Thanks
GISVC

 

[rimi2001]

In my state of La. one car is exempt if filing a chapter 7. You have to check that out in your state. It should not matter how much it is worth if it is your only car.

As far as the house goes you have 40K in equity. Not good for a chapter 7. To lower this amt. figure in the PAYOFF amt. (you will get this from the mtg co., normally they will mail it to you when you request it over the phone, this is not the same as the balance shown on your billing statements), minus the work that may need to be done to it, minus seller fees. Here it is 6% of the selling price (3% for the agent 3% to the company that sold the house) minus the title and insruance fees. All of these factors will lower the equity amt.

Did you check to see what your state exemptions are?

If you are going to see a lawyer, they will let you know all of this too. But it is nice to know what they are talking about before going in. I like to find out on my own first (at least a little bit).