Legal Question in Bankruptcy in California

Re: Mortgage Bust

In order to answer your question I would need to analyze your complete assets and debts. While you are not behind on payments right now it sounds like that will occur in the near future if you do not have an income. Please contact the office if you would like to discuss in detail.

Re: Mortgage Bust

An experienced bankruptcy attorney may assist you in discharge as much debt that can be and keeping as much of your assets that can be excluded. Contact me directly.

Re: Mortgage Bust

The answers to your questions depend in part on whether you will be filing under Chapter 7 or Chapter 13. If you have substantial equity in your rental property, that may be a non-exempt asset that a Chapter 7 Trustee would go after ... in which case a Chapter 13 would be appropriate if you don't want to lose that property. In a Chapter 13, if you have had your car for more than 2-1/2 yrs, you may be able to pay it's fair market value rather than the total owed on the car loan. That you have never been late is not a problem.

If, however, you file under Chapter 7, property taxes and car loans will be discharged but they remain as liens on the property securing them; so unless you are prepared to surrender the security interests, you will likely have to pay them. Taxes may be dischargeable depending on which tax years they are for and whether you filed those returns.

You really need to discuss this further with an attorney to determine the best course.