Legal Question in Bankruptcy in Florida

BANKRUPTCY QUESTION:

I am 12+ months delinquent on my mortgage payments. I have ZERO equity in the house. My car is worth less than 1000 dollars (paid for). I have about $15,000 dollars in unsecured credit card debt. I own nothing of value (i.e. jewelry, art, etc); have no savings; living basically from month to month on disability which I've been on for 20 years. I believe I'm eligible to file for bankruptcy.

My basic understanding is that, by law, I get to "keep" my home, car, possessions & clothes.

The "comps" estimated value of my house is about $210,000 and my outstanding mortgage debt is $196,000 which is more or less the amount the bank (chase) owned me.

My monthly NET income is $4250; with approximate Living expenses of $2500/month. I can easily write at least a 4-page "hardship" letter to document "falling behind".

Any thoughts on whether I'd qualify for a Chapter 7 vs a Chapter 13 filing?

In the end, assuming I get a discharge; who ultimately "OWNS" the house? Me? The bank?

BTW, I'm nearly 57 years old and not in the best of health. If in fact I get to "keep" the house, would I able to sell it in 10 years or does the bank just get it?

Assuming I get a discharge, will I be responsible for reassuming mortgage payments, regardless of chapter 7 or chapter 13?

Basically, my ultimate question is this: who OWNS what after the bankruptcy has been cleared?

Thanks for any help you can offer me.

K.M.


Asked on 12/30/10, 12:02 am

1 Answer from Attorneys
Carol Lawson Carol A. Lawson, PA

You do not get to keep your house unless you pay for it. If you want to keep it you need to file a chapter 13 in order to pay what you are behind on the mortgage over 36-60 mos. Your monthly net income sounds too high for a chapter 7 which is based on your gross income minus allowable deductions.

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Answered on 1/04/11, 7:51 am


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