Posted on: 20th Nov, 2008 10:24 pm
how do I qualify for chapter 7 without checking at my home equity?...I have lots of unsecured debts under my name only. I haven't been able to pay them since I lost my job. My husband and I owns a house with lots of equity. However, since my husband is the only one working, we are not even approved for anything. I wanted to file for chapter 7 but I don't think I am qualify due to the equity in my house. I have no way of paying my debts at the moment but to file for chapter 7. I am not sure if the creditors or the collection agency will sue me for unable to pay. I am worried that they may put a lien against my house. can I quit claim, and if i can, does this means I have no more rights to our property?
Hi tf_palacio!
Welcome to forums!
The court will not allow you to file a chapter 7 because your house has equity which you can liquidate and pay off the unsecured debts. As far as quitclaim is concerned, if you do that, it will be considered a fraudulent one and you may be penalized for it.
You may try and consolidate the unsecured debts and pay them off. May be your husband can help you in doing that. Or else, I am afraid, you will have to sell the property and pay off the debts.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
The court will not allow you to file a chapter 7 because your house has equity which you can liquidate and pay off the unsecured debts. As far as quitclaim is concerned, if you do that, it will be considered a fraudulent one and you may be penalized for it.
You may try and consolidate the unsecured debts and pay them off. May be your husband can help you in doing that. Or else, I am afraid, you will have to sell the property and pay off the debts.
Feel free to ask if you have further queries.
Sussane
and another option is chapter 13
THANK YOU SUSANNE FOR THE INFO.