Comments on: Mortgage Relief On The Way? http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/ Consumer Bankruptcy Blog Tue, 19 Aug 2008 22:13:28 +0000 http://wordpress.org/?v=2.6.1 By: Richard K. Gustafson http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-262 Richard K. Gustafson Thu, 14 Aug 2008 06:14:09 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-262 Paul - It is possible to file an individual bankruptcy that does not involve your spouse. I don't know what would happen to the house as I don't have enough information to form an opinion. Whether or not you could keep your house and file for bankruptcy would be something a lawyer at a consultation could give you an opinion about. Credit is a tricky thing. Your spouse's credit will likely show that you filed for bankruptcy since you are joint on the mortgage. However, her credit can not report that she filed for bankruptcy, only that you filed. Theoretically, that fact should protect your spouse's credit rating. Though, your spouse will now have sole obligation on the mortgage and that could affect debt to income ratio and that also is considered when scoring a person's credit. The bottom line here is that a bankruptcy is appropriate to eliminate debt. If you have debt you can't afford, your credit (and potentially your spouse's credit) will be adversely affected. You will not be able to rebuild the score until you eliminate the debt. If you can't afford to pay the debt, the most effective way to eliminate the debt could be a bankruptcy case. Paul - It is possible to file an individual bankruptcy that does not involve your spouse. I don’t know what would happen to the house as I don’t have enough information to form an opinion. Whether or not you could keep your house and file for bankruptcy would be something a lawyer at a consultation could give you an opinion about. Credit is a tricky thing. Your spouse’s credit will likely show that you filed for bankruptcy since you are joint on the mortgage. However, her credit can not report that she filed for bankruptcy, only that you filed. Theoretically, that fact should protect your spouse’s credit rating. Though, your spouse will now have sole obligation on the mortgage and that could affect debt to income ratio and that also is considered when scoring a person’s credit.

The bottom line here is that a bankruptcy is appropriate to eliminate debt. If you have debt you can’t afford, your credit (and potentially your spouse’s credit) will be adversely affected. You will not be able to rebuild the score until you eliminate the debt. If you can’t afford to pay the debt, the most effective way to eliminate the debt could be a bankruptcy case.

]]> By: Richard K. Gustafson http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-261 Richard K. Gustafson Thu, 14 Aug 2008 06:05:50 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-261 Steve Burk - Outside of bankruptcy you might owe a deficiency balance to the creditor (depending on the state you live in). You also could owe tax obligations. However, bankruptcy can be a good way to eliminate your liability on the deficiency balance. Bankruptcy is also an exception to the IRS rule that says "forgiven" debt is taxable income to the debtor. When you file a bankruptcy you do not have to pay taxes on debts that are discharged in bankruptcy. There is also an "insolvency" exception to the IRS rule. Steve Burk - Outside of bankruptcy you might owe a deficiency balance to the creditor (depending on the state you live in). You also could owe tax obligations. However, bankruptcy can be a good way to eliminate your liability on the deficiency balance. Bankruptcy is also an exception to the IRS rule that says “forgiven” debt is taxable income to the debtor. When you file a bankruptcy you do not have to pay taxes on debts that are discharged in bankruptcy. There is also an “insolvency” exception to the IRS rule.

]]> By: Richard K. Gustafson http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-260 Richard K. Gustafson Thu, 14 Aug 2008 06:01:31 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-260 Lori M - You have some very specific questions which should be addressed in a one-on-one meeting with a lawyer. Your income is relevant to determine chances of success in a bankruptcy case so the situation your describe is feasible. Lori M - You have some very specific questions which should be addressed in a one-on-one meeting with a lawyer. Your income is relevant to determine chances of success in a bankruptcy case so the situation your describe is feasible.

]]> By: Richard K. Gustafson http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-259 Richard K. Gustafson Thu, 14 Aug 2008 05:57:02 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-259 Sherry Andrew - Certainly a person has the option of choosing whatever bankruptcy they want. However, there are qualifications that must be met and depending on the status of payments on your house and the equity in the house, there could be good reasons to stay in your chapter 13. I would encourage you to discuss the specifics of your situation with your lawyer. I can not give specific legal advice in a blog, of course. Sherry Andrew - Certainly a person has the option of choosing whatever bankruptcy they want. However, there are qualifications that must be met and depending on the status of payments on your house and the equity in the house, there could be good reasons to stay in your chapter 13. I would encourage you to discuss the specifics of your situation with your lawyer. I can not give specific legal advice in a blog, of course.

]]> By: Richard K. Gustafson http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-258 Richard K. Gustafson Thu, 14 Aug 2008 05:54:36 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-258 Erin - You don't have to leave your property until the foreclosure sale completes. You will get a notice. In the meantime, you should be saving as much money as possible because you want to be in a position to offer a bigger security deposit which should make it much easier for you to rent a place. Erin - You don’t have to leave your property until the foreclosure sale completes. You will get a notice. In the meantime, you should be saving as much money as possible because you want to be in a position to offer a bigger security deposit which should make it much easier for you to rent a place.

]]> By: Paul http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-253 Paul Sat, 09 Aug 2008 15:52:40 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-253 Most of our debts are in my name. Can I file instead of jointly to hopefully save my wife's credit? How will that affect our home since that has both our names on it? Thanks... Most of our debts are in my name. Can I file instead of jointly to hopefully save my wife’s credit? How will that affect our home since that has both our names on it? Thanks…

]]> By: steve burk http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-252 steve burk Thu, 07 Aug 2008 18:11:03 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-252 If I owe 300,000 on my house and the bank can only get 200,000 for the house after I walk away or do I owe taxes on the $100,000? If I owe 300,000 on my house and the bank can only get 200,000 for the house after I walk away or do I owe taxes on the $100,000?

]]> By: Lori M http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-250 Lori M Sun, 03 Aug 2008 05:59:05 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-250 I am in a terrible situation--total financial ruin and to make matters worse my husband wants a divorce. Jointly we are already 2 months behind on the mortgage and up to 2 to 3 months on credit card payments. We have over $30K in credit card debt and when we started to fall behind on everything the late fees and over the limit fees made it impossible to pay the minimum payments. My husband said he talked with an attorney who told him we make too much money to qualify for bankruptcy jointly. However, we can file for dissolution and then bankruptcy separately. I am at a loss. I think if we could file bankruptcy it would relieve some of the financial stress that caused our marriage to suffer so much. In the meantime, I am getting collections calls every day every hour of the day including work. Any adivse would be greatly appreciated. I am in a terrible situation–total financial ruin and to make matters worse my husband wants a divorce. Jointly we are already 2 months behind on the mortgage and up to 2 to 3 months on credit card payments. We have over $30K in credit card debt and when we started to fall behind on everything the late fees and over the limit fees made it impossible to pay the minimum payments. My husband said he talked with an attorney who told him we make too much money to qualify for bankruptcy jointly. However, we can file for dissolution and then bankruptcy separately. I am at a loss. I think if we could file bankruptcy it would relieve some of the financial stress that caused our marriage to suffer so much. In the meantime, I am getting collections calls every day every hour of the day including work. Any adivse would be greatly appreciated.

]]> By: Sherry Andrw http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-242 Sherry Andrw Mon, 21 Jul 2008 13:46:49 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-242 I'm currently filing a Ch. 13 bankruptcy and after reading this blog..I want to file a Ch. 7 if I can keep my home. Do you have the right to decide which chapter I want to file? I’m currently filing a Ch. 13 bankruptcy and after reading this blog..I want to file a Ch. 7 if I can keep my home. Do you have the right to decide which chapter I want to file?

]]> By: Erin http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-239 Erin Sun, 20 Jul 2008 05:41:24 +0000 http://blog.legalhelpers.com/bankruptcy-blog/mortgage-relief-on-the-way/#comment-239 I have had my discharge hearing on June 27th. I now feel like the clock is ticking and I have had no luck in finding a properrty to rent. Any Suggestions? Also, I was not even given atimeframe as to exactly when I must vacate my property> Any Suggestions? I have had my discharge hearing on June 27th. I now feel like the clock is ticking and I have had no luck in finding a properrty to rent. Any Suggestions? Also, I was not even given atimeframe as to exactly when I must vacate my property> Any Suggestions?

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