House is a chapter 13

[ltandcrew]

What is the name of your state? Utah

I am currently going through a divorce and filing bankruptcy. The paralegal suggested that I file a 13 and wifey file a 7. He also suggested selling our house. I have talked with a friend who is a real estate broker and since I refinanced a year ago housing has gone down hill and doesnt think it will sell for what it would take to pay it off. how does it work with a house in a chapter 13? Wifey will be taken care of since she is filing a 7. Would it be better if I keep the house (which I will struggle to pay for) or let it be foreclosed? Thanks

 

[bigun]

BK is about a fresh start. There is nothing freah about continuing to struggle. Particularly, if you have a negative equity. With real estate involved, I'd see a lawyer as opposed to a paralegal.

 

[Ladynred]

Dare I ask why a PARALEGAL is advising a Ch 13 for you rather than a Ch 7 ? Are you in arrears on the payments ? Do you have more equity than can be exempted ??

 

[AttorneyOney]

The paralegal suggested that I file a 13 and wifey file a 7. He also suggested selling our house.

Yikes! This sounds like unauthorized practice of law. You can't trust a "paralegal" to give you sound advice, which is why they're not supposed to be doing it.

A major reason why Utah has the highest bankruptcy filing rate in the U.S. is that most 13's fail and the judges make the debtors refile instead of amending their plans. The best way to avoid becoming a double statistic (and losing a home unnecessarily) is to consult an experienced bankruptcy lawyer.

 

[ltandcrew]

Thanks for the advice

I was considering changing firms, I didn't know he was a paralegal until after the meeting.

 

[spoiler]

I just had my 341 here in utah and I can highly recommend my lawyer to you if you would like. She was great I would recommend her to anyone. feel free to email me at [email protected]