Legal Question in Bankruptcy in New York

bankruptcy

My husband and myself consulted a bankruptcy lawyer (telephone consult) in March. We held off and are again trying to figure out what path to take. We would have to file a Chapt. 13 due to our income.

We owe 90,000 on our current mortgage. We owe 14,000 in back state/fed. taxes. A home equity loan exitsts (12,000 in default) plus other debts (including 3 judgements) that equal approx. $70,000.00. That amount includes the taxes and home loan.

Our monthly expenses leave nothing left over to pay the debts. We want to sell our home to move to somewhere cheaper. What would we be obligated to pay with any possible profit (which a real estate lady told us would probably not be more than about 2 or 3 thousand dollars. Would we even be able to sell considering all the debt?

Does chapter 13 allow us to eliminate any of the debt (mostly credit cards). I know we can't eliminate student loans or taxes.

Thank you for your help


Asked on 6/11/08, 6:51 pm

1 Answer from Attorneys
jeffrey lazroe Jeffrey A. Lazroe attorney at law

Re: bankruptcy

Knowing that you can't eliminate student loans and taxes, you can eliminate or pay less than full value for your debts. Many times we can file a chapter 13 case to repay less than 25% of what is owed.

You can keep 25,000 each if you file bankruptcy jointly.

Another option would be to file a chapter 7. You may still be able to keep the house, and all of your other debts (except student loans, taxes and mortgages) It all depends on the numbers which include income and expenses.

We have an attorney in the office who concentrates in this area. But you must act soon, to give you the best chances of debt survival.

Please feel free to contact us.

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Answered on 6/11/08, 9:37 pm


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