Posted on: 23rd Oct, 2007 05:43 pm
I need to file bankruptcy for unsecured credit card debt of 80,000. I have 60,000 equity in my home. I was told by an attorney that I had to sell my home and use the equity to pay the debt. I don't want to do that. The other option, is chapter 13 with a repayment plan over $1200, which I can not afford. If I did not have the equity, I could file chapter 7. Can I quitclaim the house to my friend and then file chapter 7 after a few months? Please advise.
hi,
i think you can avoid filing bankruptcy.
you can try for a home equity loan to pay off a major portion of your credit card debt and you may contact debt consolidation companies to settle the matter.
i think you can avoid filing bankruptcy.
you can try for a home equity loan to pay off a major portion of your credit card debt and you may contact debt consolidation companies to settle the matter.
Hi Hercules,
I think Michel is right. It is better to avoid bankruptcy as it affects on the credit report. Better if you can take help from the debt consolidation companies. I know a very good community based debt Consolidation Company. You can check it out- Debtcc . It will surely help you.
Wishing you Best of luck,
Larry
I think Michel is right. It is better to avoid bankruptcy as it affects on the credit report. Better if you can take help from the debt consolidation companies. I know a very good community based debt Consolidation Company. You can check it out- Debtcc . It will surely help you.
Wishing you Best of luck,
Larry
I forgot to mention that I have applied for a home equity loan, but was told that my income to debt ratio is too low and I did not qualify. I was laid off for 2 years and took a job making a 1/3 less. My credit is already bad, two of the accounts have been turned over to collection agencies. The only payment I am current on is my mortgage.
Hello Hercules,
Could you tell me the place where you live?
In certain states you get a homestead exemption which might be greater or equal to the equity in your property. In that case you can keep your home.
You can find more information on this at http://www.mortgagefit.com/know-how/filebankruptcy.html
Could you tell me the place where you live?
In certain states you get a homestead exemption which might be greater or equal to the equity in your property. In that case you can keep your home.
You can find more information on this at http://www.mortgagefit.com/know-how/filebankruptcy.html
Ohio
Hello Hercules,
I found that in Ohio it is only $5,000 exempt for your home equity, which is far less than what you have.
In that case you might lose your home. So it will be better if you quit claim your home to your friend. This will at least save the property.
I found that in Ohio it is only $5,000 exempt for your home equity, which is far less than what you have.
In that case you might lose your home. So it will be better if you quit claim your home to your friend. This will at least save the property.