Legal Question in Bankruptcy in Georgia

chap 13 and forclosure

my income has dropped 75percent due to this economy. friends say i should let the condo go into forclosure and then file chap 13 as i want to pay my bills but lack income now. i have 40000 in unsecured debt and a second mtg of 25000. and my understanding is that your debt is reduced under chap 13.

please advise. thanks,]jim


Asked on 4/28/09, 1:45 am

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: chap 13 and forclosure

Since none of us have seen your income, living expenses, a breakdown of your debt by age/type/lender/interest rate/etc., your assets, etc. there's no way to answer you, but waiting for a foreclosure to start is usually the worst move one can make, as you have the fewest options. Chapter 13 may not work with a large income drop, but that depends on numbers you did not provide. Chapter 7 may also be an option to retain property depending on your numbers. Instead of guessing, see a lawyer ASAP to review your choices. If you're in metro Atlanta contact me to discuss them.

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Answered on 4/28/09, 3:51 am


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