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chapter 7 or chapter 13

Posted on: 30th Jul, 2009 03:35 pm
I've recently lost my job and have two mortgages the 1st is secured for 190,000 and the 2nd is unsecured for 65,000. I paid 255,000 for my house and it's now worth about 96,000 in Bakersfield,Ca. I have credit cards and two unsecured loans, and two vehicles. My wife works but without that 2nd income we don't make even close enough to make our ends meet. I've applied for a modification on my 1st and was accepted under a trial period of 90 days, and was currently rejected. after making two payments on time under the trial agreement. Now my lender wants to adjust my mortgage to even higher than i originally was paying. My first question is can i file bankruptcy? and if so, can i get rid of my 2nd lien and any if all of my unsecured debt?
Hi cockrella!

Welcome to forums!

You can definitely file bankruptcy and get rid of your debts. Once you file bankruptcy, you can get your unsecured debts discharged. As far as the secured debts are concerned, you won't be personally liable for the debts.

In my opinion, it would be better if you could file Chapter 13 bankruptcy. Under this bankruptcy, your unsecured debts would be discharged. You will get a repayment plan for your secured debts. You can pay off those debts according to the new payment plan given by the lender and clear off the debts within 3-5 years.

Feel free to ask if you've further queries.

Sussane
Posted on: 30th Jul, 2009 08:06 pm
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