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considering filing chapter 7

Posted on: 17th Feb, 2011 06:58 pm
I consulted w/ a paralegal in bankruptcy today, she told i'm not qualified to file neither 7 or 13 because i have alot of equity in the house. I think this is wrong because i'm actually underwater if she counts the HELOC. My 1st mtg balance is 280k HELOC balance if $400k. My house is only worth around 550-600k max, is this correct or do bk court also count my HELOC, if they do then I'm actually upside down.
Hi stephivo,

I will suggest you to contact a bankruptcy attorney and take his/her opinion in this matter. You will have to qualify the Means Test in order to file Chapter 7. In case you can't qualify the Means Test, you'll have the option of Chapter 13 open.
Posted on: 17th Feb, 2011 09:25 pm
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