Legal Question in Bankruptcy in California

We bought our condo-our primary residence in '05 for 303,000 it is a 35 yr loan. 1st is $279,000, 2nd $8,000, 3rd $15,000 all used as purchase money for this property and are now all owned by FHA.
Our loan is a Cal HFA loan, First 5 years principal only. It has now been 5 yrs. On Sept our mortgage payment (which includes tax and mortgage insurance) went from $1455 to $1809. Our HOA's were $267 monthly in 05, they are now $376 with a special assessment pending to each owner for $13,000 for roofing the condos, Hopefully it will not pass -I am not late with my HOA fees yet)
We have $50000 in credit cards debt. We own 3 vehicles, a truck worth 5500, car worth 3000 and a Honda motorcycle worth 500 dollars; we own a blank piece of Arizona desert worth $400.
Social Security has a pending debt against me for $28,000 (I know it probably cannot be dismissed)
My husband has a 457 plan at work worth 16,000.
Total, that's our assets, that's our debt. No money in the bank, I am not late yet on my bills but getting scary close. My husband�s net income is approx 4400 month which includes 400+ in monthly gas mileage reimbursements. My take home is approx 400 per month. This is not going to change, and there are no jobs. After paying my bills, including food, car insurance, etc we have $30. That does not include emergences, vehicle registrations, etc.
We have no children and no other income.
We went to Credit counseling late last year; they helped to adjust a couple of the credit cars interest, but I am starting to drowned
Questions:
Might we qualify for chapter 7 and dismiss all debt including condo, give it back to FHA?
What happens to our 2nd and 3rd mortgage?
In California, what will happens with the HOA fees if we can walk away from condo with a chapter 7?
What will happen to the money in my husbands 457 plan?
If the bank sells our condo for less than we owe will we be responsible for the unpaid balance?
Will we be responsible for the taxes on the unpaid balance?
The wolf is at the door and I really need some help, any answers will be greatly appreciated.
Smokki

Asked on 9/30/10, 9:49 am

Brian Whitaker Lifeline Legal, LLP

0 users found helpful

0 attorneys agreed

Answers:

Yes.

Discharged.

Discharged (but you'll be responsible for any HOA fees that accrue after your BK is filed until you are no longer on title).

Nothing - it's exempt.

No.

Answered on 10/05/10, 1:06 pm

Keywords

Match Any Match All

Country

State

Area of Law