I've been sued by American Express

[Kiem]

What is the name of your state (only U.S. law)? CA

Due to job loss I wasnt able to pay them and now they just delivered a summon to my house suing me for over 10K, and I have 30 days to respond. Now I've got a job but the pay only covers my mortgage and utility bills. I cannot afford to pay them any money.


Would I qualify to file for bankruptcy, but continuing to pay my mortgage? What would happen?

My house is under the water anyway, about $200K to be exact, I treat it as rent payment.

 

[bigun]

Why would you want to drag a house underwater by $200K through bk?
Let the house go in the bk as well as any other cc debt and start over.

 

[Kiem]

it's not that I want to hangon to the house. i've got the obama plan approval which lowered my payment that is even cheaper than rent for the next 3 years. i want to let the house go after 3 years when the deal is expired, but dont know what will happen if i file for bk.

 

[bigun]

If, you sign a reaffirmation agreement, you're on the hook for any deficiency balance.
However, many lawyers will not sign off on a reaffirmation if they feel it's not in the debtors best interest and in the 9th circuit, you've had a ruling that says a debtor has satisfied the requirements of the bk code by offering to reaffirm. If the reaffirmation has been denied, the lender can't foreclose and you continue to pay and walk away whenever you please. This is something you need to discuss with a bk attorney.
Most bk lawyers give free or lowcost initial consultations. Speak with a few and see how they suggest you handle this situation.

ride through, reaffirmation agreement, bankruptcy Georgia Bankruptcy Blog: Arizona Bankruptcy Court - "Ride Through" Still Available For Secured Debts After Failure Of Timely Filed Reaffirmation Agreement